July 2, 2009 (LBO) – Sri Lanka has jacked up petrol prices steeply, retailing the fuel at 230 percent above the Singapore wholesale price while cushioning mainly business users of diesel, continuing a skewed tax policy of over-taxing some segments of the population. From today standard 90-octane petrol is retailed at 130.0 rupees, up 10 rupees and diesel at 73.0 rupees, up 3.0 rupees. Premium 95-octane petrol is up 15 rupees to 148 at state-run Ceylon Petroleum Corporation (CPC).
Lanka IOC, a unit of the Indian Oil Corporation, also piggy-backs on CPC pricing.
Low cost fuel
Petrol is usually the cheapest refined product to import.
According to data released by Sri Lanka’s central bank, the Singapore wholesale price of refined petrol was 77.70 dollars a barrel yesterday, diesel 78.15 dollars and kerosene the most expensive at 78.40 dollars a barrel.
With the exchange rate at 115.10 rupees to the dollar, the wholesale price of petrol was only 55.89 rupees a litre, indicating that Ceylon Petroleum Corporation was selling petrol 232 percent above the wholesale price.
The Singapore price of diesel was 56.21 rupees, indicating that at 73.0 rupees a litre, diesel is retailed 129.8 percent above the wholesale price.
The import and