Sri Lanka hikes fuel prices by LKR 50 and diesel by LKR 60 as filling stations go dry

Power Minister Kanchana Wijesekera requested citizens not to line up for fuel and announced the closure of refinery operations till the arrival of the next shipment of crude.

Published: 26th June 2022 12:07 PM  |   Last Updated: 26th June 2022 12:37 PM   |  A+A-

People wait in a queue hoping to get fuel near a fuel station in Colombo, Sri Lanka. (Photo | AP)

People wait in a queue hoping to get fuel near a fuel station in Colombo, Sri Lanka. (Photo | AP)

By PTI

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 on Saturday.

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.

Wijesekera requested citizens not to line up for fuel and announced the closure of refinery operations till the arrival of the next shipment of crude.

Sri Lanka is facing a severe forex crisis which has forced the country of 22 million to declare a default on its international debt in April, becoming the first Asia-Pacific country in decades to default on foreign debt. Sri Lanka is facing the worst economic crisis since independence in 1948 which has led to an acute shortage of essential items like food, medicine, cooking gas and fuel across the country.

After Colombo declared a default on loans in April, US bank Hamilton Reserve, a holder of Sri Lankan bonds, filed a lawsuit in the US district court in Manhattan over the breach of contract. Sri Lankans languish in long fuel and cooking gas queues as the government is unable to find dollars to fund imports.

Indian credit lines for fuel and essentials have provided lifelines until the ongoing talks with the International Monetary Fund could lead to a possible bailout. There have been street protests in Sri Lanka against the government since early April due to its mishandling of the economic crisis.

On May 9, the political crisis saw the unleashing of violence with 10 people, including a parliamentarian, being killed. President Gotabaya Rajapaksa's elder brother Mahinda Rajapaksa had to resign as prime minister amidst the political and economic turmoil.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp