Sri Lanka to raise fuel prices from today, petrol Rs137
ECONOMYNEXT – Sri Lanka is raising petrol (92 Octane) to 137 rupees a litre and auto diesel to 109 a litre, Cabinet Spokesman Rajitha Senaratne said.
Petrol was earlier at 117 rupees a litre and diesel was earlier 95 rupees. Minister Senaratne said in 2015 when the administration came to office petrol was 150 rupees a litre and it was cut as oil prices fell.
A barrel of oil which fell to 45 dollars a barrel had not gone up to over 74 dollars he said.
The prices would be raised from midnight tonight, he said.
Super petrol will be raised to 148 rupees from 128 and Super diesel to 119 rupees a litre from 110 rupees.
Kerosene was raised to 101 rupees to stop the abuse of a big subsidy Minister Senaratne said. But beneficiaries of the Samurdhi income support scheme and fishermen would be given assistance, he said.
The current administration cut kerosene sharply to 44 rupees amid concerns of corruption.
The government hopes to implement a price formula in the future, but the price revision was done to the minimum possible extent he said. The price hikes were a below a suggested formula, he said.
Minister Sarath Amunugama said the cabinet of ministers had ‘in principle’ approved a price formula.
A price formula is necessary to stop Ceylon Petroleum Corporation from borrowing, tends to take away resources that can be used for investment and growth. CPC borrowings can also push up interst rates. If the central bank then prints money to keep rates down, the rupee falls.
The International Monetary Fund has also asked Sri Lanka to market price fuel. India now prices fuel daily. (Colombo/May10/2018)