Prices of kerosene will remain at 48.00 rupees a litre.
The fuel price revision will also apply to across Indian oil retailer Lanka IOC’s 160 retail outlets, its Managing Director K Ramakrishnan said.
A net oil importer, Sri Lanka last lowered fuel prices on Sept. 27, as global crude prices climbed down from its record highs of 75 dollars to about 61 dollars a barrel.
President Mahinda Rajapakse, who is also the country’s finance minister, had ordered (fuel) prices to be reduced to ease the cost of living, D S Attygalle, Director General of the Treasury said.
Consumer prices in Sri Lanka rose to 15.4 percent in Sept from 15.3 percent in August, the Census & Statistics Dept said last week, due to price gains in electricity, fuel and vegetables.
In return, Rajapakse raised excise duties on tobacco and alcohol "to discourage consumption."
Accordingly, excise duties on alcohol go up by 25 rupees a litre, while a cigarette stick costs 50 cents more.
"Therefore, a 750 milliliter bottle of spirits will go up by 15 rupees, while a 72 millimeter cigarette stick will cost 50 cents more," Attygalle said.
The statement follows figures presented in parliament today that showed overall government spending will go up 42 percent to 804.6 billion rupees in 2007 from what was budgeted for this year.In addition, defence spending is to climb by 45 percent to 139.5 billion rupees, with military procurements almost trebled next year.
(US$ 1 = LKR 104)