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Ending months of denial and suspense, the government raised petrol prices by Rs. 8.00 with effect from midnight Friday Ending months of denial and suspense, the government raised petrol prices by Rs. 8.00 with effect from midnight Friday Petrol at the pump would now cost Rs. 65.00 per litre.

But the government shot down a suggestion by Ceylon Petroleum Corp to raise prices of diesel by Rs. 6.00 to Rs. 32.00 per litre and kerosene by Rs. 2.00 to Rs. 27.50 per litre.

However, the partial hike based on a monthly pricing formula are still less than required, a Ceypetco official explained, with actual revisions being Rs. 9.00 for petrol, Rs. 10.50 for diesel and Rs. 10.00 for kerosene.

Faced with surging world oil prices, Sri Lanka placed ceilings on fuel prices since February to keep inflation in check.

The government has spent about Rs. 6 bn so far, to keep domestic oil from rising too much.

Despite OPEC’s assurances that it is ready to open the taps, global oil prices have been soaring lately amid booming Asian demand, tight stocks and geopolitical tensions.

The price of crude oil now hov