Colombo: Crisis-stricken Sri Lanka on Tuesday hiked petrol prices by 24.3 per cent and diesel by 38.4 per cent, pushing fuel prices to record levels, while Sri Lanka’s worst economic crisis is due to a lack of foreign exchange reserves. Going through a crisis.
After the second price hike after April 19, petrol prices are now at Rs. 420 (1. 1.17) per liter while diesel was priced at Rs. 400 (.1 11.1) per liter, the highest ever. Octane 92 costs Rs 82 for petrol and Rs 82 for diesel. The decision to increase 111 was taken by state-owned fuel company Salon Petroleum Corporation (CPC).
‘Fuel prices will be revised from 3 am today. The formula for fuel pricing approved by the cabinet will be used to revise prices, “said Power and Energy Minister Kanchan Vijasekara on Twitter.
“Pricing includes import costs, shipping costs, distribution costs and taxes.”
The Cabinet also approved the amendment of transport and other service charges accordingly. This formula will be applied every 15 days or every month ‘, he said.
The increase comes as people have to wait in long lines for hours at petrol pumps.
Lanka IOC, a Sri Lankan subsidiary of Indian Oil Corporation, India’s largest company, has also hiked retail fuel prices.
This increase in fuel value includes imports, distribution of stations and all tax matters. Not only that, there is no money for fuel imports and jobs have been requested to work from home when there is a limited amount. Fuel waste can be prevented by moving vehicles to and from the workplace, with emphasis being placed on frugal use of fuel in emergency services.
In the wake of the ongoing economic crisis in Sri Lanka, the Government of India has supplied 40,000-40,000 tonnes of petrol and diesel to Sri Lanka under the credit line. India last month offered an additional 50 500 million in loans to help neighboring countries import fuel. Sri Lanka is currently struggling to pay for imports following a sharp fall in its foreign exchange reserves.
