Sri Lanka holds fuel prices ahead of traditional new year
Apr 10, 2019 20:11 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT- Sri Lanka has kept fuel prices stable, halting a pricing formula for the Sinhala and Tamil New Year season, Finance Minister Mangala Samaraweera said.
"Although fuel prices should be increased to reflect the rising global prices, local rates will not be increased to give the people relief during the festive season," a statement from the minister said.
He said world oil prices have been consistently rising, reaching 74 US dollars per barrel on Wednesday from 67 US dollars a barrel a month earlier.
Samaraweera had increased fuel prices below the cost-reflective formula rates in March for the same reason as well.
Octane 92 petrol prices in March were increased to 132 a litre, while Octane 95 was increased to 159 rupees.
Diesel prices were raised to 104 rupees a litre in March, while Super Diesel was increased to 134 rupees.
Sri Lanka's rupee has appreciated to 174 levels against the dollar, from around 180 in March due to a local private credit crunch.
A depreciation puts pressure to increase prices.
Sri Lanka Central Bank has depreciated the currency from 130 to 180 rupees since the United National Party led administration came to power, following an explicit policy of depreciation generating monetary instability through an unstable peg. (Colombo/Apr10/2019)