Sri Lanka in steep fuel price hike, corrects diesel mis-pricing
Feb 11, 2012 (LBO) - Sri Lanka has steeply raised the price of diesel partially correcting chronic mis-pricing between refined fuels in a move that could also help reduce loans taken by petroleum distributors and stabilize a weakening exchange rate.
State-run Ceylon Petroleum Corporation said a litre of 90-octane petrol would be raised by 12 rupees to 149 rupees and standard auto diesel would be raised by 31 rupees to 115 rupees partially correcting fuel mis-pricing. Lanka Indian Oil Corporation said it would follow state mandated pricing.
Kerosene would be raised by 35 rupees to 106 rupees from mid-night Saturday. Premium 95-octane petrol would go up to 167 rupees a litre.
Sri Lanka's rupee fell from 110 rupees to the US dollar in the spot market to 115.30 over the last few months partly due to credit demand from energy utilities including the state power distributor which were running losses.
Diesel is currently the most expensive refined fuel in international markets having overtaken, kerosene, which is usually the highest priced distillate.
According to Central Bank data, refined Diesel was 132.94 dollars a barrel (95.79 rupees a litre) kerosene was 131.6 US dollars a barrel (94.80 rupees a litre) and petrol was 125.3 dollars a barrel (91.01 rupees a litre).
Petrol would go up by 8.75 percent and diesel 36 percent from Saturday, partially correcting current mis-pricing. Fuel mis-pricing has also encouraged the import of diesel guzzling large luxury vehicles.
Petrol is heavily overpriced with a 25 rupees-a-litre excise tax slapped on each litre by the state. Diesel is only charged a 2.50 rupees a litre tax.
(source : http://www.lankabusinessonline.com/fullstory.php?nid=1905374136 )
Kerosene would be raised by 35 rupees to 106 rupees from mid-night Saturday. Premium 95-octane petrol would go up to 167 rupees a litre.
Sri Lanka's rupee fell from 110 rupees to the US dollar in the spot market to 115.30 over the last few months partly due to credit demand from energy utilities including the state power distributor which were running losses.
Diesel is currently the most expensive refined fuel in international markets having overtaken, kerosene, which is usually the highest priced distillate.
According to Central Bank data, refined Diesel was 132.94 dollars a barrel (95.79 rupees a litre) kerosene was 131.6 US dollars a barrel (94.80 rupees a litre) and petrol was 125.3 dollars a barrel (91.01 rupees a litre).
Petrol would go up by 8.75 percent and diesel 36 percent from Saturday, partially correcting current mis-pricing. Fuel mis-pricing has also encouraged the import of diesel guzzling large luxury vehicles.
Petrol is heavily overpriced with a 25 rupees-a-litre excise tax slapped on each litre by the state. Diesel is only charged a 2.50 rupees a litre tax.
(source : http://www.lankabusinessonline.com/fullstory.php?nid=1905374136 )
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