Sri Lanka slashes fuel prices
Jan 21, 2015 21:53 PM GMT+0530 | 3 Comment(s)
COLOMBO (EconomyNext) - Sri Lanka has slashed fuel prices with ordinary petrol down by 33 rupees to 117 rupees a litre and diesel down by 16 rupees to 95 rupees, the energy ministry said.
Petrol with 95-Octane count was reduced by 30 rupees to 128 and super diesel by 23 rupees to 110 a litre.
The price of kerosene was cut by 16 rupees to 65 rupees.
The ministry of petroleum said the cabinet of ministers who met today had decided to cut prices and in the future an automatic price formula will be brought.
Sri Lanka still over-price petrol and under-prices diesel which is more expensive to import per litre promoting the use of a carcinogenic fuel for commercial transport and also for richer people who can afford to buy diesel driven gas guzzling SUVs.
However with the latest revision the gap between petrol and diesel has narrowed.
In Sri Lanka petroleum distribution is a duopoly controlled by ruler-run firms from Sri Lanka and India and prices are artificially kept up, unlike in a privatized industry.
In free countries where the state and rulers does not have the tools to overprice fuel and petroleum distribution is in the hands of private firms, petrol is cheaper than diesel and tariffs change daily.