The Ceylon Petroleum Corporation yesterday announced "with regret" a further price increase of petroleum products due to continued increase of crude oil prices, product prices and the exchange rate as well as a push to reduce the institution’s debts.

During the period May 1 to 31, crude oil prices increased from US$ 24.85 to US$ 25.14 and the exchange rate from Rs. 96.15 to Rs. 96.22, a statement from CPC said yesterday. There were significant increases in product prices as well in the Singapore market.

"As you would see, the price increases for the critical products are only 40 cents per litre for kerosene and 50 cents per litre for auto diesel," the statement said.

"VAT is expected to be introduced from July 1," it said. "We do not expect retail prices to change for kerosene and auto diesel as a result of the introduction of VAT."

"We also wish to announce that the debt the present CPC management inherited has been reduced by Rs. 3,400 million from January 1 to end May 2002," it elaborated. "The necessity to settle past debt is another reason for the high prices."

The CPC said that during the first half of June, there was a drop in crude oil and product prices and that if the trend continued into the rest of June, the corporation hoped it would be able to reduce most of the product prices in July.

Revised Petroleum Prices

June 21 — July 21

Product Present Price Revised Price

Rs/Litre Rs/Litre

Lanka Petrol 90 Octane 54.00 54.50

Lanka Petrol 95 Octane 57.00 57.50

Lanka Auto Diesel 30.00 30.50

Lanka Super Diesel 35.30 35.80

Lanka Kerosene 20.90 21.30

Lanka Industrial Kerosene 23.20 23.60

Lanka Furnace Oil 200 Sec. 24.00 24.70

Lanka Furnace Oil 500 Sec. 22.20 22.90

Lanka Furnace Oil 800 Sec. 21.40 22.10

Lanka Furnace Oil 1000 Sec. 20.90 21.60

Lanka Furnace Oil 1500 Sec. 20.00 21.00

Lanka Furnace Oil 2000 Sec. 19.70 20.60

Lanka Furnace Oil 3500 Sec. 18.70 19.60