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CPC loses Rs. 1.5 billion a month on fuel - Fowzie
Friday, 21 April 2006 - 3:16 AM SL Time
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The government yesterday said the UNP was making a hue and cry over the fuel price hike in a bid to mislead the masses. It attributed the increase in the fuel prices to the soaring oil prices in the world market.
A government spokesman said the government did not raise the price of fuel each and every time oil prices increased in the world market and in order to cover the losses incurred by the Ceylon Petroleum Corporation and Indian Oil Company, by selling fuel at a lower price, the Treasury provided funds, he said.
In 2005 the Treasury provided Rs 21 billion as subsidies and considering the current oil prices in the world market the oil subsidy was expected to reach Rs 35 billion by the end of 2006.
Transport Minister A. H. M. Fowzie, commenting on the fuel price hikes said the government had been compelled to increase the price of fuel as there was no alternative since the Petroleum Corporation incurred a loss
Rs 1.5 billion per month on fuel even after the hike.
He said the government did not want to face a situation where the majority of funds meant for development projects of national importance, had to be allocated for the oil subsidy. He said the recent increase was an effort to keep the oil subsidy at the same level of 2005, which was Rs 21 billion.
`If these monies were spent on the construction of rural hospitals the government could have built at least 500 of them. Although the UNP now makes a big noise about the revision of oil prices by the UPFA government, they don`t talk about fact that during their tenure the local fuel prices were pegged to the global fluctautions. If this trend continued today we would have been able to maintain the oil prices at the same level,` he said.
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Sam007
Joined: Aug 2005
Posts: 81
Member Profile
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21 Apr 2006 08:30:04 GMT Report for Abuse
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I don not know why UNP has to cry over the increased fuel prices.It is a must as the oil prices in the world market has gone up. Not only Sri Lanka the other countries are affected too. we can see the oil prices going up further due to the tension between USA and Iran,US oil stock piles have reduced,Nigerian oil Fields are being not producing as the violenc in that region and also due to the hurricane season in USA.
This is inevitable. |
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