Thu, 02 September 2010  21:19:02
Early Warning 2 Comment(s)
02 Jan, 2007 15:23:15
Sri Lanka flirts with raising retail fuel prices by as much as 5%
January 2, 2007 (LBO) – Gasoline prices are likely to go up by 5-percent in Sri Lanka, the state-run fuel retailer warned Tuesday, as global oil prices hit 60 dollars a barrel.

Petrol at the pump now costs 92.00 rupees a litre, and Ceylon Petroleum Corp. Chairman Asantha de Mel said they are looking at a 5.00 rupee hike "within the next few days".

A net oil importer, Sri Lanka last lowered fuel prices on October 25, as global crude prices climbed down from its record highs of 75 dollars to about 58 dollars a barrel.

"We can't maintain retail prices now that price of barrel of oil is 60 dollars. Petrol should go up at least by five to six rupees a litre," de Mel told reporters.

The price revision does not cover diesel and kerosene, which current sells at 60.00 rupees and 48.00 rupees a litres respectively, he said.

Sri Lanka's oil bill climbed up to around to 2.2 billion dollars last year, from 1.6 billion in 2005.

CPC shares two thirds of the local fuel market with Indian fuel retailer Lanka IOC commanding a third.

In 2006, world oil prices shot up to record peaks, hitting 78 dollars a barrel in July, amid unrest in the oil-rich Middle East and supply disruptions.

These levels put prices 20 dollars higher compared with the start of 2006 and four times higher compared with 2002 prices.

However, oil prices have since tumbled owing to high US energy stockpiles and mild US temperatures, while traders appeared to pay less attention to geopolitical concerns in crude-producing countries such as Nigeria and Iran.
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READER COMMENT(S)
2. Jan 08
On the 5th, oil prices stood at $55.59 a barrel, down almost $3 from the previous day. Prices are going down steadily over the past couple months, however, our costs will still remain pretty high. Be happy we are getting a subsidized price - alot of other countries do not do that and the consumer pays for it.

As for the inefficiancies of the government? well, we're always paying for it. and always will be. we are the taxpayers after all. :)

1. Jan 04
Will the government please let us know exactly how much its retail charges per litre work out to per US $ paid for crude?

That way we would know exactly what to expect in terms of price increases and reductions per US $ change in world market prices of crude.

I think we pay far too much for fuel and that much of this cost is due to rotten management methods and losses due to corruption.

I do not think we need to continue to pay for the inefficiencies of the government.