HARRY EXPLAINS OIL PRICE HIKE

Oil Prices were not increased:
BUT FORCED TO DO IT:

From mid night of the 29th October the prices of Petrol by Rs 12/, Diesel by Rs 8/, Kerosene by Rs 10/- were increased. As a consequence of this increase the prices of all consumer items and transport charges are bound to increase. The increase of oil prices from time to time has pressurised the general public. This increase had to be made though reluctantly for two main reasons, the Chairman of Petroleum Corporation Harry Jayawardena quipped. The government had to bear loses in spite of increases in the oil prices in the world market owing to various conflicts that existed. This was revealed via a media statement. However the Minister Susil Premajayantha had remained silent without making any comments in this vital issue. The media statement made by the Chairman Petroleum Corporation is as follows:
“For a considerable period of time there had been numerous conflicts in the Middle East and European countries regarding oil prices which were constantly increasing. Owing to the drought that prevailed in this country in the recent past the water levels in the catchment areas in several reservoirs had dropped drastically. However electricity had to be supplied without interruption which was not possible by hydro power. In order to supply power at optimum levels, the Ceylon Electricity Board had to purchase oil at subsidised rates for their engines to generate the optimum electricity needed. All these losses were borne by the Petroleum Corporation without burdening the general public. These increases were made by the barest minimum amounts.
In spite of increases of oil prices in the world market on several previous occasions the Petroleum Corporation did not take steps to increase the prices of petrol, diesel and Kerosene for a consideration period of time. The losses incurred were borne by the Government. Supplying the Ceylon Electricity Board with enormous quantities of oil at subsidised rates made the Corporation to sustain losses. This increase was forced to be made particularly to compensate for these losses. However, still the major losses are borne and incurred by the Government.”