Dec 29, Colombo: Sri Lanka's petroleum authority, the Ceylon Petroleum Corporation (CPC) has decided to increase the price of Furnace oil effective from December 31.

According to sources a liter of furnace oil would be increased by Rs. 25.

Furnace oil is imported for the purpose of thermal power generation by the Ceylon Electricity Board.

The CPC says it incurs losses of Rs. 4.2 billion per month from providing furnace oil at concessionary price to CEB and several private sector power suppliers.

The CEB's requirement for furnace oil had recently declined due to the increase in hydropower generation in the country following the heavy rains.