The Cabinet sub-committee on the cost of living has decided to revise fuel prices and the date of the fuel price revision will be announced very soon, Energy Minister Udaya Gammanpila said in a media briefing today.
He explained that, due to the country’s pandemic situation, it was unable to announce the date because doing so would result in long lines at gas stations.
“Despite the huge increase in fuel prices in the world market, the government has managed to hold the current fuel prices without revising them for 21 months. Unfortunately, the government can no longer keep prices stable. There has never been an era in history when prices in the world market have not been revised for such a long time. A Rs. 331 billion loss was incurred by the Ceylon Petroleum Corporation (CPC) by the end of 2020 due to the continuous purchase of fuel at higher prices with low sales at lower prices,” the Minister said.
As a result, the debt of the CPC has become unaffordable, he said.
“The government must spend $3 billion per year on fuel imports. Due to the pandemic situation, foreign investment has stopped. A large number of foreign workers have returned and their remittances have decreased. Spending $3 billion on fuel imports is difficult in the midst of a currency crisis,’ he said.
Following a lengthy debate, the Cabinet subcommittee on living expenses decided to revise fuel prices, which will be made up in the near future, Minister Gammanpila added.