The Cabinet Sub-Committee on Cost of Living (CoL) has approved the increase of fuel prices.
Speaking during a press briefing today, Energy Minister Udaya Gammanpila said effective date of the fuel price revision would be determined by the ministries of Finance and Energy and informed later.
He stated that due to the prevailing Covid-19 situation in the country, they cannot announce the date of the effective date in advance as the public would start forming long queues near fuel stations.
Minister Gammanpila stressed that as a government they understand that the people of the country are currently facing a difficult moment due to the rising cost of living and the loss of income methods.
That is the reason why the government refrained from increasing fuel prices throughout a period of 21 months and somehow maintained prices despite the significant hike in fuel prices in the global market, he said.
“However, unfortunately the government is no longer able to bear this huge loss,” he pointed out.
The minister claimed that never before in the country’s history has there been an era when fuel prices have not been revised for such a long period of time, despite prices going up in the global market.
Gammanpila said that due to continuously purchasing fuel at a higher price and selling at a lower price, the loss incurred by the Ceylon Petroleum Corporation (CPC) by the end of 2020 is Rs. 331 billion.
Therefore, the institution is already at risk of not being able to repay loans, he stressed.