Sri Lanka cuts fuel prices, warns crude oil prices rising
ECONOMYNEXT – Sri Lanka’s government said it will cut fuel prices from midnight Thursday, with petrol and diesel down by two rupees a litre each, while indicating the reduction may be temporary as global prices were on the rise again.
Fuel prices have been reduced for the fourth straight time, the finance ministry said in a statement.
Octane 92 petrol will be cut by two rupees to 123 rupees a litre, octane 95 petrol also by two rupees to 147 rupees and auto diesel by two rupees to 99 rupees.
However, the price of Super Diesel, which is an environmental friendly fuel, was reduced by three rupees per litre to 118 rupees as it complies with Euro -04 Emission Standard as well.
Fuel prices are reviewed every 10th day of the month under the government’s fuel pricing mechanism.
“Though the prices were reduced today, the international oil prices tend to increase continuously from the second week of January onwards,” the finance ministry said.
When the oil prices were raised on October 10, the price of a barrel of crude oil was 85 US dollar.
It came down to 58 dollars on October 26, and to 52 dollars when the fuel prices were last reduced on December 21.
“However, since second week of January 2019, the crude oil price and the prices of refined products are reported to be on the increase,” the finance ministry said.
“The crude oil represented by BRENT price index and the refined petroleum prices represented by Singapore’s PLATTs price are moving upward and by January 10 it has gone up to 59 dollars.”