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Petrol Pricing

Dec 05, 2008 (LBO) - The government said it will reduce fuel retail prices from midnight Friday in line with falling global oil prices and ahead of a court hearing on domestic fuel pricing.
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Prime minister Ratnasiri Wickremenayake told parliament that the price of a litre of petrol will be cut by 20 rupees and furnace oil by 10 rupees.

Petrol would come down to 122 rupees and 135 rupees for the two types sold.

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The reduction would be the second in two months.

In early November, the government cut fuel prices when it presented its budget for 2009.

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The price reduction comes at a time when the island's supreme court is hearing a public interest petition challenging the government's pricing of fuel.

The court has ordered the Treasury Secretary to explore the possibility of reducing fuel prices in Sri Lanka in response to a petition filed by an opposition parliamentarian.

Sri Lanka has been overpricing petrol amidst charges of fleecing petrol users.

Though the wholesale cost of petrol is only 25 rupees a litre, Sri Lanka's government has set a price of 122 rupees a litre even after the latest price cut.

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