Sri Lanka to feel the pinch of global fuel price hike

•  CPC assesses situation ahead of price revision
•  According to the CPC, the surge in demand for fuel during the winter season and tightening of sanctions against Russia as a oil producing country are among reasons
•  An official who wished to remain anonymous said that sanctions on 117 vessels involved in transporting Russian fuel had also caused upward pressure on prices

Colombo, Nov. 24 (Daily Mirror) - The Ceylon Petroleum Corporation (CPC) is in assessment of the current hike of global fuel prices, triggered by multiple factors including sanctions on Russia, an official said.

The CPC, in its regular review of prices of refined petroleum products, has taken note of the spike in the world market. The price curve shows an increasing trend during the first three weeks of November, as assessed by the top regulator of petroleum trade in Sri Lanka.

According to the CPC, the surge in demand for fuel during the winter season and tightening of sanctions against Russia as a oil producing country are among reasons. The official who wished to remain anonymous said that sanctions on 117 vessels involved in transporting Russian fuel had also caused upward pressure on prices.

However, news of a potential Russia-Ukraine peace deal caused a slight drop in oil prices around November 22 as it eased supply fears.

Sri Lanka brings two or three shipments of petroleum products a month. The CPC is currently assessing the global market ahead of its next price revision for the local market.

The CPC follows a formula for cost reflective energy pricing in the local market.