No decision taken yet on CPC fuel price hike increase

Sri Lanka has received adequate stocks of diesel and a decision has not been taken on increasing the fuel prices, says Minister of Energy Udaya Gammanpila.

His remarks came against the backdrop of long queues of vehicles observed at filling stations.

Lanka IOC, the subsidiary of Indian Oil Corporation in Sri Lanka, announced the increase of fuel prices from midnight February 06.

Subsequently, the Ceylon Petroleum Corporation (CPC) also sought permission from the government to go for a price hike, mirroring Lanka IOC’s move.

However, after Lanka IOC increased its fuel prices, the consumers were seen queuing at Ceypetco filling stations. As a result, a shortage of fuel was reported at several filling stations.

Meanwhile, India’s High Commissioner to Sri Lanka Gopal Baglay today handed over a fuel consignment of 40,000 metric tonnes from the Indian Oil Corporation (IOC) to Sri Lanka’s Energy Minister Udaya Gammanpila.

Steps will be taken to immediately unload the consignment and hand over the fuel to the Ceylon Petroleum Corporation (CPC).

The fuel consignment was delivered by the Oil tanker ‘Swarna Pushp’ arriving from India. 

Earlier this month, Sri Lanka signed a $500 million credit line with India to import fuel, as the country seeks to stave off power cuts amid a foreign exchange crisis that has hampered purchases of diesel for power plants.