Pricing Wars

Sept 27 (LBO) – Sri Lanka’s state oil giant Ceypetco dropped fuel prices on Wednesday to appease trade unions, but has been helped by falling world prices of crude oil. Sri Lanka is expected to pay over 2.0 billion dollars this year, up from 1.6 billion last year for oil imports.

(corrected) Sri Lanka’s minister of petroleum A H M Fowzie said the price of a litre of petrol would be reduced by two rupees to 99 rupees and a litre of diesel by 2.50 rupees to 64.50 rupees.

Prices of kerosene will remain unchanged at 48 rupees a litre. The price change follows a deal struck with striking private bus operators trade unions to reduce prices, or allow them to raise bus fares.

“World market prices have come down and we are in a position to purchase fuel at prices less than what we did last month. We are passing this on to users,” Fowzie said.

“We expect these prices to continue for another two months.” Ceypetco has placed a fresh order for fuel stocks at the rate of 61 dollars a barrel, Fowzie said, which is due in a week.

The oil corporation said it has managed to trim losses to 900 million rupees a month now, from two billion rupees at the beginning