All citizens and political parties should rally against the government’s decision to increase fuel prices, Janatha Vimukthi Peramuna (JVP) said.
Former JVP MP and former COPE chairman Sunil Handunnetti told the media at JVP headquarters, Battaramulla that no one is talking about the Fuel Price Stabilization Fund set up by the government. Handunnetti pointed out, “As a result of this decision, public will be severely affected in addition to the corona epidemic. Instead of giving relief to the people, the people have been more subjugated. With this decision the prices of consumer goods will rise significantly.
The Petroleum Corporation states that it will increase fuel prices to cover its losses. The concession has not been given to the people every time the price of oil falls in the world market and the loss of the CPC has not been covered.The extra profit has been taken to the Treasury.”
“When the price of an oil barrel dropped to around US dollar 40 in the recent past, it was said that a Fund would be set up to provide relief in the event of an increase in oil prices in the future. According to the Central Bank report, the government was to set up the Fuel Price Stabilization Fund with the aim of raising Rs. 200 billion within six months, benefiting from the sharp fall in oil prices in the market. The Fuel Price Stabilisation Fund was set up when prices fell. What happened to that fund now? ” Handunnetti questioned.
“Today the government does not say a word about that Fund. However, the 2020 Central Bank report reveals more information. Although the global oil price was relatively low, the financial performance of the Ceylon Petroleum Corporation (CPC) increased in 2020 due to the fact that the local price level of major petroleum products remained unchanged.” Handunnetti noted.
Handunnetti also noted that the IOC would make an additional profit of Rs.12.84 per litre of petrol by this increase. According to these price adjustments, the IOC will gain twice as much profit as the Petroleum Corporation, Handunnetti said.