Sept 20, 2012 (LBO) – Sri Lanka’s kerosene sales have come down after a price hike in February that reduced a subsidy given by tax payers, while highly taxed petrol sales continue to grow, official data show. Data released by the Central Bank shows that kerosene sales fell 26.7 percent in June to 11,000 metric tonnes from 15,000 metric tonnes a year earlier.
In the six months to June kerosene sales were down 11.9 percent to 74,000 metric tonnes.
Kerosene sales grew until February when prices were raised. The finance ministry said at the time that the largest consumers of subsidized kerosene were industries.
Kerosene, which is similar to jet fuel, is the most expensive refined fuel in the world market when compared to diesel or petrol.
On June 19, the Singapore price of refined petrol was 121.8 US dollars a barrel (100.25 rupees a litre with the dollar a 131.70 rupees), diesel was 130.45 US dollars (107.37 rupees a litre and kerosene 132.01 (108.66 US dollars).
State interventions in energy prices have set wrong and costly incentives among users for years in addition to promoting kerosene use at the expense of cheaper fuels like petrol.
Petrol sales in June rose 5.0 percent to 6