Feb 10, 2012 (LBO) – Sri Lanka is considering raising retail prices of fuel because of rising world oil prices, petroleum industries minister Susil Premajayantha said. Sri Lanka’s future oil imports will cost more as international prices have increased owing to cold weather in the Western hemisphere and uncertainty caused by sanctioned against Iran, he told Vimasuma.com, our sister news website.
“We will have to consider these developments in future. Accordingly, if international oil prices increase, we too will have to raise retail prices.”
The government is subsidising some fuel products and this has led to huge losses at the state-owned refiner, Ceylon Petroleum Corporation, Premajayanth said.
A litre of diesel is sold at 26 rupees lower than the world price while kerosene gets a subsidy of 31 rupees.
Analysts also said Sri Lanka will have to pay more for its petroleum supplies, all of which are imported, given the recent depreciation of the rupee against the US dollar.
CPC sources said the price of petrol is to be increased by 20 rupees a litre, diesel by 13 rupees and kerosene by 13 rupees.