Fuel Costs

Nov 06, 2008 (LBO) - Sri Lankan president Mahinda Rajapaksa said Wednesday the government had slashed retail fuel prices with immediate effect in an effort to bring down transport costs and inflation. "From today, the price of a litre of diesel will be reduced by 30 rupees," Rajapaksa told parliament when he presented the government's budget for 2009.

"This will help to bring down transport costs.

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The new prices of a litre of diesel would be 80 rupees and 95.30 rupees for the two products sold.
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The price of petrol will be reduced by 15 rupees and kerosene by 20 rupees a litre, he said.

Petrol would come down to 142 rupees and 155 rupees for the two types sold.

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Rajapaksa said the government had reduced fuel prices even though world crude oil prices remained volatile, although they had come down sharply.

The island spends about three billion dollars a year on imports of oil and refined products, he said.