The price of fuel in Sri Lanka cannot be reduced just because the price of crude oil in the global market has gone down by a certain percentage, the Ministry of Petroleum Industries said today responding accusations made by UNP spokesman.

Speaking at a press conference in Colombo yesterday, UNP spokesman Gayantha Karunathilaka claimed that despite oil price presently declining in the global market, fuel prices in Sri Lanka continues to remain at a very high level.

“Why is the Ceylon Petroleum Corporation (CPC) incurring losses when the Lanka IOC gaining profits,” he questioned.

Responding to this the Petroleum Ministry in a release stated that the government never proceeded to hike fuel prices just because fuel prices in the global market escalated.

Fuel storage facilities in Sri Lanka is adequate only for a time period of 35 days and therefore fuel is imported by the country taking this time frame into consideration, it said.

Hence fuel used today are from fuel consignments imported 35 days back, the ministry said stressing that fuel prices were increase in February after considering fuel prices which were escalating since October last year.

During that period the price of a crude oil increased to $117 per barrel while among refined oil products a petrol barrel rose to $130, a diesel barrel $135 and kerosene to $133 a barrel, the ministry pointed out.

“Same as prices are not increase just because fuel prices go up, fuel prices in the country cannot be reduced just because crude oil prices go down by a certain percentage,” the release stated.