June 25, Colombo: Sri Lanka's government-owned Ceylon Petroleum Corporation (CPC) has been urging the government to increase fuel prices as the CPC is facing huge losses due to the rise of fuel prices in the world market.

CPC sources said the loss is now over one billion rupees. The highest loss is from diesel, which is sold at a loss of five rupees per liter. The loss from petrol is Rs. 3.50 per liter. Poor man’s fuel, kerosene, causes a Rs. 340 million loss to the CPC, second only to the loss from diesel.

CPC Chairman Ashantha de Mel has warned of a financial crisis at the CPC if the situation drags on and the wages of CPC workers are affected.

The government halted a proposed move to increase fuel prices again at the beginning of this month to avoid repercussions to the cost of living.