Will Ceylon Petroleum Corporation increase fuel prices?

COLOMBO (News 1st) - The Ceylon Petroleum Corporation (CPC) says talks on introducing a price formula for fuel is still underway. The rise in oil prices in the world market in recent times, resulted in the Lanka IOC increasing its price of a liter of diesel by Rs. 5 and a liter of petrol by Rs. 9. The fuel price rise by Lanka IOC came into effect on February 23rd. However, the CPC continues to sell fuel at prices introduced in January 2015. This has caused the CPC to incur a loss of Rs. 33 million a day. Speaking on the matter, Minister of Petroleum Resources Development, Arjuna Ranatunga, said discussions are being held with the Finance Ministry and proposals are being made. Chairman of Ceylon Petroleum Corporation, Dammika Ranatunga, says that if the company is to make profits it has to formulate a price mechanism which will automatically adjust according to prices in the world market.In August 2017, the International Monetary Fund in a review report, gave Sri Lanka till March 2018 to introduce a price mechanism for fuel, which the government has been unable to do.