Transport Services Management, Power and Energy Minister Mahinda Amaraweera said domestic fuel prices will not be increased until the end of this year, despite crude oil price hikes in the global market.
The Minister said that a decision was taken at the weekly Cabinet meeting not to burden the masses by increasing fuel prices. He said that the surcharge of Rs. 26 imposed on diesel and petrol was removed from June 23 midnight.
Following the revocation of surcharge on fuel, the Ceylon Petroleum Corporation (CPC) will have to incur a loss of over Rs. 35 per litre of petrol and nearly Rs. 25 per litre of diesel, he said.
Minister Amaraweera said that there has been a price hike in crude oil in the global market during the past few weeks. However, the Government has taken a decision not to increase domestic fuel prices.
He said that the recent fuel price reduction in the global market was a temporary phenomenon and added that after the restrictions brought about by the Covid-19 pandemic were lifted, the fuel prices have started to move up again.
The Minister said that although there are allegations that the public is not benefiting from the reduction of crude oil prices in the world market, the CPC still incurs a loss of Rs. 20 per liter of diesel and Rs. 35 per liter of petrol.
He said that if the price formula introduced by the former Government had been implemented, the fuel prices would go up and down in line with the prices in the world market and it will not benefit the people.