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Govt. fuel transport costs hiked 10 times in past year 

10 Nov 2022

 
  • State Minister Indika Anuruddha says payments decided based on costs of fuel, tyres, spare parts
  • Notes diesel, kerosene still sold at loss of Rs. 10-22 per litre
  By Imesh Ranasinghe  The Sri Lankan Government has increased the transport payments to private fuel bowser owners on 10 occasions in the last 13 months, while the Government is selling diesel and kerosene at a loss of over Rs. 10 and Rs. 22 per litre, respectively, revealed the State Ministers for Power and Energy. Speaking in Parliament yesterday (9), State Minister for Power and Energy Indika Anuruddha said that transport payments for fuel bowser owners have increased by 135% in the low country and by 124% in the hill country since July 2021, while the payments have been increased on 10 occasions in the last 13 months. He said that payments to the fuel bowser owners are decided based on the costs of fuel, tyres, batteries, spare parts, and depreciation of the vehicles, while including a 15% margin. Meanwhile, the other State Minister for Power and Energy D.V. Chanaka said that the Ceylon Petroleum Corporation (CPC) is selling diesel at a loss of Rs. 12 per litre, while kerosene is sold at a loss of Rs. 22 per litre. He added that Singapore Platts prices, which Sri Lanka uses as an index to decide the prices of refined petroleum products, indicate an increase in a barrel of petrol to $ 99 from $ 92 two weeks ago; similarly, diesel prices are at $ 134 per barrel from $ 129 two weeks ago.  He noted that although the global prices of crude oil, petrol. and diesel have increased, the CPC is selling these products at a loss. Sri Lanka last revised fuel prices on 17 October, where 92-Octane petrol and Auto Diesel prices were reduced by Rs. 40 and Rs. 17, respectively, per litre. Accordingly, the current price per litre of 92-Octane petrol is Rs. 370, 95-Octane petrol is Rs. 510, and Auto Diesel is Rs 415. In May, the Government introduced a fuel price formula based on six factors, which include costs related to unloading, taxation, production, operation, administration, profit margins, and contribution to the Fuel Price Stabilisation Fund.  Although the prices are set to be revised on the 1st and 15th of every month, Minister Kanchana Wijesekara said that the Government decided to not revise the prices on 1 November.


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