Champika blames fuel price hike

Power and Energy Minister Champika Ranawake today blamed the fuel price hike on the increase in electricity tariffs.

Speaking at a seminar in Katubeda today the Minister also rejected claims that the Ceylon Petroleum Corporation (CPC) was providing fuel to the Ceylon Electricity Board (CEB) on concessionary rates.

He said that fuel from the CPC is purchased at the normal rate. He said that failure by some government institutions to pay their electricity bills on time had led to the CEB incurring losses.

The Petroleum Ministry had said last year that CPC was supplying fuel at concessionary rates to the CEB.

The Ministry had stated that the CPC will however sell a liter of heavy fuel to the CEB at the market price of Rs. 82 per liter from this year.

The CPC currently sold a liter of fuel to the CEB at Rs. 40 last year.

The CPC had announced last year that most of its losses had been recorded due to the sale of fuel at concessionary rates to the CEB.

However, the CEB claimed that it had paid all dues to the CPC and its Rs. 5 billion profit for 2010 was recorded after paying all its dues.

 

(Report by Indika Sri Aravinda for Colombo Gazette)