Minister of Power and Energy Kanchana Wijesekera has provided a breakdown of the Ceylon Petroleum Corporation’s fuel cost, following the fuel price revision announced on Sunday (Mar 31).
In a 6-point statement on ‘X’, the minister revealed the reason for not reducing the prices of 92 Octone Petrol and Auto Diesel.
Following is the statement shared by Minister Kanchana Wijesekera;
- Refinery cost has an impact on Auto Diesel, 92 petrol and Kerosine. Value Added Tax (VAT) is applicable for Refinery products as well from the 1st of January. Refinery gains and losses are calculated on the above products. Refinery does not produce Super Diesel or 95 Petrol.
- Price Formula allows for a maximum profit margin of 4% on all products.
- Auto Diesel and 92 Petrol full profit margins are not applied to maintain prices. If a full 4% profit margin is applied a price increase was due on Auto diesel and 92 Petrol.
- Profit margins are not applied for Kerosine.
- USD rates are calculated at the average monthly rate at which actual purchases were done during the month.
- Another products gains or losses cannot be passed on to any other product. Cost reflective pricing formula applies individually to each product. (NewsWire)
