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A 17 PER CENT GASOLINE PRICE INCREASE IN SRI LANKA

By Walter Jayawardhana

All oil companies doing business in Sri Lanka have announced a drastic increase of oil prices of gasoline by 17 per cent.

All said they are increasing the prices in accordance with the increasing cost of the crude oil.
State owned Ceylon Petroleum Corporation Chairman Asantha de Mel said they are increasing the price of a liter of gasoline (petrol) to Rupees 117.

He said the government gave permission to increase the price according to the cost of the crude oil. Ceylon Petroleum Corporation processes the crude oil at its refinery at Sapugaskanda.
K. Ramakrishna, the Managing Director of the India owned Lanka IOC who sell one third of the the island nations gasoline at the pumps said their prices are also increased accordingly.

Since April ,Diesel which has a direct influence in the transportation of goods and passengers in the country has been increased to 75 Rupees to a liter .

We gradually adjusted diesel prices four times since April, as diesel is sensitive. Diesel prices affect the transport of goods and services,' CPC head de Mel said. But the government is issuing a subsidy to fishermen who are operating their boats on diesel.

The Thompson Financial Service said , “Global oil prices jumped 2.07 dollars on Friday to 77.02 dollars, a near 11-month high. Rising fuel costs have helped to push Sri Lankan inflation to 17 percent this year. A net oil importer, Sri Lanka's fuel bill climbed up to around to 2.2 billion dollars last year, from 1.6 billion dollars in 2005.”

Sri Lanka , except the hydro power , imports all its energy needs from abroad, that bears a heavy burden on its economy. Conversion to coal fired power stations have been delayed by civil agitations but the government has started building them.

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