The Finance Ministry announced that a price revision quoted in a circular issued by the Ceylon Petroleum Corporation (CPC) will be subject to approval by the Cabinet of Ministers before new rates come into effect.
Yesterday, the Government Information Department yesterday confirmed that the Ceylon Petroleum Corporation (CPC) had issued a circular requesting all fuel stations to revert to previous prices.
Lanka Indian Oil Company (LIOC) however had stated that they would not be reverting to previous oil prices. hey announced that they too would increase their prices from July 6 in keeping with the CPC increase.
On July 5, the CPC had increased fuel prices; by Rs 8 for Petrol 92, Rs 7 for Petrol 95, by Rs 9 for Diesel and by Rs 10 for Super Diesel.
Prices had been increased as per the fuel pricing formula introduced in May of this year. It promised to revise prices every two months, keeping with world oil prices. In the last few months, oil production had dropped as a result of trouble in Libya, Venezuela and Angola. Prices were also affected by US sanctions on Iran and in June oil production had considerably dropped.These issues together have led to significant increases in world oil prices.