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Gammanpila rules out oil price increase

30 Mar 2021

Regardless of the increase in global oil prices and contrary speculations of local fuel price hike from the opposition, Minister of Energy Udaya Gammanpila yesterday (29) confirmed to The Morning Business that local fuel prices would be maintained at their current levels.   Speaking to us, Gammanpila revealed that the Ministry of Energy is aware of the rising prices in the global market.  “There has been a price hike in the global market, but we have not increased prices in the local market for one and half years, sometimes more than that,” Gammanpila revealed.  On another note, Ceylon Petroleum Corporation (CPC) stated in local reports to have been losing money due to local fuel prices being maintained at October 2019 levels.  Furthermore, the Minister of Energy stated that the decision to keep the prices constant was influenced due to consumers undergoing difficult economic challenges, thereby the government evaluated a firm stance on carrying this burden for the moment.  “However, we are still not raising prices because consumers are going through difficult economic times, thus the government has evaluated that at the moment there will not be a price increase. This burden will be absorbed by the Government and cushion it for consumers” He added.  When inquired about future fluctuations in the global oil prices, the minister expressed uncertainty as the future carries endless and unpredictable possibilities.  Thus, Gammanpila commented: “I cannot comment on what the price changes will be like in the coming future, however at the moment, we will not raise prices.”   On the other hand, Minister of Trade Bandula Gunawardena also noted the skyrocketing prices of oil, thereby stating that if the prices in the world market keep increasing, the related companies will collapse.  Meanwhile, the ship Ever Given being stuck across the Suez Canal last week caused a marine route blockage in Egypt. Thus, the aforementioned blockage has reported having impacted the global supply chain and shipping circles from Asia to Europe.  However, international reports as of last night stated that the Ever Given freed. 


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