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Price Balance

Oct 30, 2011 (LBO) - Sri Lanka has raised pump prices by around 10 percent with petrol prices going up by 12.00 rupees a litre and diesel by only 8.
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00 rupees, widening an already existing gap. The standard 90-Octane petrol will now cost 137 rupees at the pump and the premium 95-Octane 155 rupees. Auto diesel will cost only 84 rupees and kerosene 73 rupees.
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Analysts say price hikes will help reduce pressure on an exchange rate peg with the US dollar and match re-balance domestic demand.

Petrol is now and 63 percent more expensive than diesel, despite costing less to import than diesel.



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Refined diesel is traded at a higher price internationally as the fuel contains more energy and is also retailed slightly higher than petrol in other countries. Kerosene is traded at an even higher price.

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Jet fuel is also similar to kerosene.
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The Singapore wholesale refined price for petrol was around 81.88 rupees a litre last Friday according to Central Bank data when an exchange rate of 110.



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10 rupees was used. Diesel was 86.76 and kerosene 87.68 rupees.

Diesel is used by business and rich people who own luxury jeeps and pick-up trucks.

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Petrol is used by small car owners, motorcycles a
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