Sri Lanka raises fuel prices; petrol at an all-time high of Rs 420 per liter

Crisis-hit Sri Lanka on Tuesday raised the price of petrol by 24.3% and diesel by 38.4%, a record rise in fuel prices amid the country’s worst economic crisis due shortage of foreign exchange reserves.

With the second fuel price hike since April 19, the most used Octane 92 petrol would now cost 420 rupees (1.17 USD) and diesel 400 rupees (1.11 USD) per litre, an all-time high.

The decision to raise the price of Octane 92 petrol by 24.3% or Rs 82 and diesel by 38.4% or Rs 111 per liter was taken by the state fuels entity, Ceylon Petroleum Corporation (CPC ).

The price of fuel will be revised from 3 am today. The Cabinet-approved fuel pricing formula has been applied to revise prices, Power and Energy Minister Kanchana Wijesekara said on Twitter.

The price revision includes all costs caused by importation, unloading, distribution to stations and taxes.

Cabinet also approved the revision of transportation and other service charges accordingly. The formula will be applied fortnightly or monthly, he said.

The rise came as the public continues to suffer in long queues at gas stations hit by shortages.

Lanka IOC, the Sri Lankan subsidiary of Indian oil major Indian Oil Corporation, also raised retail fuel prices.

We have increased our prices to match the CPC, Manoj Gupta, CEO of LIOC, told PTI.

Meanwhile, auto rickshaw operators have said they will raise the fare to Rs 90 for the first kilometer and Rs 80 for the second.

To mitigate costs, the government announced that headteachers would have the discretion to determine which employees would be required to physically report. The others are allowed to work from home.

Lanka IOC has been operating in Sri Lanka since 2002.

Sri Lanka has been considering different options to facilitate measures to prevent fuel pumps from running dry, as the country faces a severe foreign exchange crisis to pay for its imports.

The island nation is grappling with an unprecedented economic crisis, the worst since gaining independence from Britain in 1948. It is grappling with a shortage of almost all essentials, due to a lack of dollars to pay for imports .

A crippling shortage of foreign exchange reserves has led to long queues for fuel, cooking gas and other necessities, while power cuts and soaring food prices have deepened misery Population.

The economic crisis has also triggered a political crisis in Sri Lanka and a demand for the resignation of President Gotabaya Rajapaksa. The crisis has already forced Prime Minister Mahinda Rajapaksa, the president’s older brother, to resign on May 9.

A 40% inflation rate, food, fuel and medicine shortages and power outages led to nationwide protests and a plummeting currency as the government ran out of foreign exchange reserves he needed to pay for imports.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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