Sri Lanka Hikes Fuel Prices As Filling Stations Go Dry

Colombo

Crisis-hit Sri Lanka has hiked petrol prices by LKR 50 and diesel by LKR 60 respectively, the third price revision in over two months, as the country continues to reel under the worst economic crisis in decades due to a crippling shortage of foreign exchange reserves.

State-run fuel retailer Ceylon Petroleum Corporation (CPC) has announced that the price hike will come into effect from 2 pm on Sunday. Lanka IOC has also hiked prices by the same proportion.

The last fuel price hike was announced on May 24, which saw petrol and diesel prices being raised by 24 per cent and 38 per cent respectively. This is the third fuel price revision being enforced in the island nation since April 19. From Sunday, petrol will cost LKR 470 per litre and diesel LKR 460 per litre.

The move comes after CPC informed the Sri Lankan government on Saturday that there would be a delay in the arrival of fuel shipments due to banking and logistical reasons.

 Regret to inform you that CPC has informed me that the suppliers that had confirmed petrol, diesel and crude oil shipments to arrive earlier this week and next week have communicated the inability to fulfil the deliveries on time for banking and logistical reasons, Sri Lanka's Power and Energy Minister Kanchana Wijesekera tweeted.

The minister said that until the next shipments arrive, priority would be given to diverting the existing stocks to public transport, power generation and industries, while diesel and petrol would be distributed at limited filling stations throughout next week.