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Sri Lanka extends petrol, diesel tax surcharges

ECONOMYNEXT – Sri Lanka has extended import duty surcharges on refined fuel for three months till November 24, which is a key revenue source for the government as tax revenues are hard hit by a Coronavirus pandemic.

Sri Lanka is also building a fund out of fuel tax revenues. The current administration has said it will not adjust fuel prices to market levels but will change taxes to keep retail prices steady.

Petrol 92 Octane will be taxed at 20 rupees a liter. Other petrol would also be taxed at the same rate.

Low sulphur Super diesel would be taxed at 30 rupees a litre and diesel with sulphur more than 10 parts per million will be taxed at 12 rupee per litre.

Other diesels would be taxed at 20 rupees down from 30 in June.

Brent crude has fallen from around 59 dollars in December 2019 to around 43 dollars despite low demand due to Federal Reserve money printing which has weakened the dollar. (Colombo/Sep02/2020)