Taxes from fuel soars with more cars in Sri Lanka, higher demand

ECONOMYNEXT – Taxes from fuel has risen six fold in the first four months of 2016 to 17.2 billion rupees with more cars on the road and demand rising after pump prices were cut, official data show.

A finance ministry report said demand was up with the vehicle fleet expanding 11.6 percent and lower pump prices encouraging use.

Excise duty revenues from petroleum products rose 614 percent to 17.2 billion rupees in up to April 2016, from 2.4 billion rupees in 2015.

In early 2015 fuel retail prices were cut sharply cut.

For the full year 2015, the government collected 45.0 billion rupees from fuel taxes, up from 28.7 billion rupee a year earlier.

Octane 92 petrol sales rose 18.7 percent to 911,000 metric tonnes in 2015 from a year earlier.

By end 2015, Sri Lanka charged a 27 rupee per litre excise tax on petrol and only 3 rupees from diesel.

There was also a 35 rupee import duty on petrol, which is mostly paid by Lanka IOC, which does not refine fuel domestically. (Colombo/July17/2016)

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