New Year Gift

Apr.15 (LBO) – Sri Lanka hikes fuel prices by Rs.8.00 from midnight Saturday after a 10-month lag as world crude oil prices raced to US$ 70 per barrel. Petrol at the pump will cost Rs.88.00, diesel, Rs.58.00 and kerosene Rs.38.50, Ceylon Petroleum Corp. (CPC) Chairman Jaliya Medagama said.

The Rs.8.00 across the board hike also covers furnace oil used mainly to fuel thermal power plants.

“Despite the price revision, we are still loosing money on kerosene, which should be sold at Rs.60 and marginally on diesel and furnace oil,” Medagama said adding that the treasury has informed CPC of its inability to subsidise fuel prices further.

Sri Lanka’s finance ministry said Thursday that fuel subsidies are placing an unsustainable burden on the exchequer.

The Finance Ministry says the Rs32 billion spent last year, could have been better used for development activities and uplifting the poor.

Sri Lanka imports its entire light crude requirements from Iran (70 percent), Malaysia (20 percent) and Saudi Arabia (10 percent) refining about 2-million metric tonnes locally.

The balance is imported as refined products.

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