Sri Lanka cuts fuel prices

COLOMBO, Dec 06, 2014 (EconomyNext) – The Sri Lankan government has cut fuel prices amid plunging crude oil prices and five weeks ahead of a snap presidential poll where President Mahinda Rajapaksa is challenged by a ruling party defector.

The state-run Ceylon Petroleum Corporation (CPC) said it reduced the price of petrol and diesel by seven rupees a litre to 150 rupees and 111 rupees respectively and the price of kerosene by five rupees to 81 rupees a litre with effect from midnight Friday.

The move follows prices cuts by the CPC in September when it reduced the petrol price by five rupees a litre, kerosene by 20 rupees and diesel by three rupees.

Global crude oil prices have fallen sharply in recent months with the strengthening of the US dollar in which most commodities are priced and growing supply amid a slow economic recovery in advanced countries.

The island also has a presidential poll on January 8, 2015 in which Rajapaksa is being challenged by a ruling party defector appearing as common candidate of a newly unified opposition.

Rakapaksa’s ruling party split on November 21 when Health Minister Maithripala Sirisena quit along with other ministers.

Sirisena announced he would appear as the common candidate in a coalition of opposition parties who closed ranks aiming to prevent Rajapaksa’s bid for an unprecedented third term.

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