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CPC hikes petroleum prices

The price of petrol and diesel has been increased by 50 cents per litre and prices of other petroleum products have been increased by 40 cents to one rupee from midnight yesterday (June 21). The Ceylon Petroleum Corporation (CPC) attributed the price revision to a slight increase in crude oil prices, product prices and the exchange rate.

A press release issued by the CPC said:

"It is with regret we announce a further price increase of petroleum products. This is again due to continued increase of crude oil prices, product prices and the exchange rate. During the period (May 1-31) crude oil prices increased from US$ 24.85 to US$ 25.14 and exchange rate increased from Rs. 96.15 to Rs. 96.22. There were significant increases in product prices as well in the Singapore market.

"VAT is expected to be introduced as from July 1. We do not expect retail prices to change for kerosene and auto diesel as a result of the introduction of VAT.

"We also wish to announce that the debt the present CPC management inherited has been reduced by Rs. 3,400 million from January 1 to end May 2002. The necessity to settle past debt is another reason for the high prices.

During the first half of this month there is a drop in crude oil and product prices and if that trend continue into the rest of June we hope we will be able to reduce most of the product prices in July.

The present Colombo Spot retail selling prices of Petroleum Products and the revised prices for the 30 day period effective from midnight 21 June,

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