Sri Lanka hikes diesel, kerosene prices

Sri Lanka
By Editor_1
People stand in a queue to buy kerosene oil used in cooking stoves in Colombo, on August 20. The government has warned that the fuel shortage could lead to rationing --ISHARA S. KODIKARA / AFP

COLOMBO – The state-run Ceylon Petroleum Corporation (CPC) on Friday (11) announced a hike in diesel and kerosene prices, effective midnight, but kept petrol and super diesel prices unchanged.

The announcement comes after back to back price revisions that saw fuel prices being reduced amidst a global market slump. Sri Lanka purports to apply a pricing formula for fuel linked to world market prices, but application of the formula have been found wanting.

In May this year, the government hiked fuel prices to a record high, and followed it up with a rationing system that provides a weekly quota of fuel for motorists. However, earlier this week the government said two said it was losing Rs 12 per litre of diesel and Rs 22 per litre of kerosene.

Friday’s announcement will see auto diesel prices increased by Rs 15 or 3.6% per litre, and kerosene by Rs 25 or 7.4% per litre, upping the retail prices to Rs 430 and Rs 365 per litre respectively. However prices of other fuel types, super diesel, petrol and industrial kerosene will remain unchanged.

The CPC in a statement announcing the price hike said that it does not expect to revise the fuel price again in November.

Later in the day, Lanka OIC also raised the prices of the same products to match the CPC prices.

-ENCL

Editor_1
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