By Hiran H.SenewiratneCeylon Petroleum Corporation (CPC) sources stated that they had recorded losses during the past few months subsequent to the government reducing fuel prices in January.
The government will consider reducing fuel prices to be on par with world market prices, but due to recurring losses registered by the previous government, ‘We are hoping to introduce a special price formula to pass those benefits to the public, Deputy Minister of Petroleum and Petroleum Gas Dr Anoma Gamage said.
She said that with world oil prices seeing a decline in recent times, the government will consider passing on that benefit to the public.
But the CPC is grappling with many problems including employees in excess of requirements and inefficient business practices, which have stood in the way of the authorities going for a cost reduction, she said.
"We are now looking to improve efficiency and also introduce reforms to put the entity in good shape she said.
Meanwhile, petroleum analysts stated that the increase in crude oil prices in the world market last year did not warrant a corresponding increase in Sri Lanka.
Lanka IOC will not be reducing local petroleum prices despite world oil prices being reduced per barrel. At present world oil prices are at US$ 60 per barrel and the loss incurred per litre by the company has come down to Rs 15 from Rs 30,its sources said.
The company imports 20,000 tons of oil to the country per month and enjoys a 20 percent market share. Therefore, the company is not in a position to reduce local oil prices at any cost but will go ahead with their retail business expansions in the country, the sources said.
The price of a barrel of crude oil was US$ 45 when fuel prices were reduced in January.
The losses recorded by both institutions were due to taxes and a request had been submitted to slash taxes on fuel imports, our news source said.
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