May 27, 2008 (LBO) – Lanka IOC, the Sri Lanka unit of the Indian Oil Corporation is raising diesel prices by 20 rupees a litre from midnight Tuesday, the company said. Wheat prices peaked in February, gold in March and rice in April. Oil however is still buoyant hitting a new high of 135 dollars last week.
Petrol prices would be held unchanged, a text message from the firm said.
Last Saturday Sri Lanka’s state-run Ceylon Petroleum Corporation jacked up standard diesel by 30 rupees to 110 rupees a litre and petrol to 157 a litre, despite petrol being a cheaper commodity worldwide.
The increase came days after the Lanka IOC raised diesel prices by 20 rupees.
Today’s increase puts diesel from Lanka IOC at 130 rupees a litre. The firm has about a quarter of the fuel retail market in Sri Lanka.
When Lanka IOC raises prices unilaterally, customers flock to CPC increasing the losses of the utility.
Global commodities have been rising at record levels in 2007 after the US Federal Reserve and other reserve currency central banks went on a money printing spree following a collapse in credit markets.
The Federal Reserve has now halted its rai