Additional costs and taxes have raised the price of a litre of petrol – CEYPETCO

Additional costs and taxes have raised the price of a litre of petrol – CEYPETCO

Written by Bella Dalima

21 Aug, 2014 | 9:14 pm

The Ceylon Petroleum Corporation notes that a tax of 45 rupees is charged per litre of petrol.

At a media briefing held on Wednesday, officials of CEYPETCO noted that the price of a litre of petrol, when it reaches port is 100 rupees, but additional costs and taxes cause the market prices to be higher.

CEYPETCO notes that an additional cost of Rs.12   is borne per liter of petrol for harbour charges, storage costs, employee wages and distribution, although the price of a liter of petrol when it reaches port is 100 rupees.

Accordingly the total cost borne per litre of petrol is Rs.112. However, at present a liter of 92 octane petrol is sold at Rs.162.

Chairman of CEYPETCO, S. Amarasekera said;

“The government imposes the most tax on petrol. Collectively, all taxes amount to about 45 rupees. It was also noted at this media briefing, that fuel prices in Sri Lanka need not be increased if world crude oil prices persist at a level between 110 and 115 US dollars per barrel.”

Minister of Petroleum Industries, Anura Priyadarshana Yapa said:

“We are not planning on increasing fuel prices. The matter is open. We are considering the behaviour of oil prices in the market.”

Journalists also raised question at this media briefing on allegations raised by government ministers that CEYPETCO continues to incur losses in spite of selling fuel for a higher price than the cost, as a result of the operations of an officials’ mafia.

Anura Priyadarshana Yapa replied;

“That rumour is being propagated saying we are selling low sulfur fuel for a higher price. It is a lie that it is brought down for 60 rupees and sold at 80 to 100 rupees. Even now we are selling low sulfur fuel at a loss of 10 rupees per liter. We are incurring major losses by selling it at a lower price. It is wrong to highlight this as fraud or corruption. How can you point the finger at officials saying they are in a mafia? Do they determine the prices? We incur losses on diesel, low sulfur fuel and kerosene.”

CEYPETCO is also to introduce a new type of diesel to the market from Friday.

 

 

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