Lanka IOC requests fuel price hike

Lanka IOC has made a request to the government with regard to an increase in fuel prices, due the prevailing situation with regard to global oil prices.

LIOC Managing Director Manoj Gupta told Ada Derana that they are awaiting government approval to raise the price of petrol by Rs. 20 per litre and diesel by Rs. 30 per litre.

Meanwhile the Ceylon Petroleum Corporation (CPC) says the government has informed that it does not expect to increase fuel prices.

CPC chairman Sumith Wijesinghe says the government including the Ministry of Energy and the Ministry of Finance is currently discussing ways to provide relief to the people without raising fuel prices. 

The chairman said that neither the CPC nor the Finance Ministry or the government can control the increase in global oil prices and that they are expecting a solution from the government with regard to the fuel prices, if a price hike is not possible. 

Global oil prices jumped to a three-year high above $85 a barrel on Friday, boosted by forecasts of a supply deficit in the next few months as the easing of coronavirus-related travel restrictions spurs demand, Reuters reported.

Brent crude futures advanced 1% to settle at $84.86 per barrel. Front-month prices, which touched their highest level since October 2018 at $85.10, were headed for a weekly rise of 3%, which would be their sixth straight weekly gain.

U.S. West Texas Intermediate (WTI) crude futures settled 97 cents, or 1.2%, higher at $82.28 per barrel. The contract is heading for a 3.5% gain on the week, putting it on track for an eighth consecutive weekly rise.

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