Marginal rise in fuel prices

The Government has decided to raise oil prices with effect from midnight in line with recent hikes in the global market, said a press release issued by the Government Information Department.

Accordingly, the price of a litre of Octane 90 will go up by Rs 10.00, Octane 95 by Rs 15.00, Diesel by Rs. 3.00, Kerosene by R. 1.00 and Furnace Oil by R. 1.00.

"The Government is reluctantly forced to raise prices in order to ensure that the post-war development thrust goes ahead on schedule and without hiccups. The Government notes that fuel still remains heavily subsidized with the consumer obtaining Gasoline, Kerosene, Diesel and Furnace Oil at prices far below than the market prices," the statement added.

It further said:

"The Government emphasizes that it continues to act with responsibility and with sensitivity to the travails of the consumers, cushioning them from the shocks caused by the volatile character of global oil prices.

"For example the Government as of now bears a loss of Rs. 21.44 for every litre of Octane 90, Rs. 11.77 for Octane 95, Rs. 16.77 for Kerosene, Rs. 18.96 for Diesel and Rs.30.93 for Furnace Oil.

"Even after this price increase the Ceylon Petroleum Corporation (CPC) will continue to bear a considerable loss on each litre of fuel. This extra cost will be borne by the Treasury, Chairman of the CPC, Major General Ashoka Thoradeniya, said."