The petrol price increase by Rs.12, diesel by Rs.8 and kerosene oil by Rs.10 per litre recently by the Ceylon Petroleum Corporation was said to be due to the increase of crude oil prices in the world markets. Nevertheless, the actual reason was the decreased crude oil prices due to the national debt crisis faced by a number of European nations especially Greece, recent international financial reports revealed.
The reports said Brent Crude Oil prices in Asia had come down by 0.5% to $109 while light crude oil prices fell by 0.8% reacting to the slowdown in Europe especially the credit crunch experienced in Greece that the European Union central bank was trying to bail out by writing off 50% national debt.
Due to this crisis in Europe not being resolved as expected by the EU central bank as the government of Greece intending to seek the consent of the people on the proposed bailout and consequent austerity measures by a referendum ripples of uncertainty hit not only the global oil prices but also affected certain stock markets in Asia and Europe. Therefore the claim made by CPC in its press release that the “Increase in fuel prices in the world markets,” is not supported by international reports on fuel prices posted on a daily basis.
Though the CPC increased the prices of petrol, diesel and kerosene while the international crude oil prices were not increased the losses sustained due to supply of oil for thermal power stations run by the Ceylon Electricity Board was one of the principal reasons explained as “The Corporation had to suffer large losses due to provision of excess fuel stocks to generate electricity,” CPC said in its release after the recent oil price hike.
Now the President of the Lanka Private Bus Owners Association Gemunu Wijeratna has requested the government to continue selling diesel for private buses on the earlier prices saying bus operators were incurring a loss with the revision of fuel prices. But the Transport Minister Kumara Welgama has not responded to the request and said no bus fare hike could be allowed at this juncture.
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