Sri Lanka: Fuel prices rise by over LKR 50 amid shortage and restrictions

Amid Sri Lanka facing a deteriorating economic crisis and fuel shortage, the Ceylon Petroleum Corporation (CPC) gas, a state-owned company that imports and distributes petroleum, has decided to raise the fuel rates on Sunday with effect from 2 AM. According to a Daily Mirror report, the cost of a litre of 92-octane petrol has been increased by 50 rupees, while the cost of a litre of 95-octane petrol has jumped by 100 rupees. The report further reveals that a litre of Super Diesel has been increased by 75 rupees, while auto diesel price has climbed by 60 rupees. As a result, a litre of 92-Octane petrol now costs Rs 470, while a litre of 95-Octane petrol costs Rs 550. 

Apart from this, the fuel prices of the CEYPETCO (Ceylon Petroleum Corporation) and Lanka IOC (LIOC), a subsidiary of Indian Oil Corporation, are currently equal as a result of a simultaneous rise in fuel rates by LIOC, the report further added.  

According to a report from The Guardian, amid the energy minister's warning that the country had almost run out of petrol and diesel, several scheduled deliveries have been delayed. Sri Lanka reportedly raised fuel prices by up to 22%. 

Surge in Sri Lanka petrol prices 

Sri Lanka has also made the decision to set fuel limitations for private automobiles on Sunday. The supplies of petrol, diesel, and crude oil that were expected to come this week and the next week will not reach Sri Lanka, according to Kanchana Wijesekera, the minister of electricity and energy. The minister further emphasised that the suppliers had informed the government-owned CPC that they would not be able to make the scheduled supply due to logistical and financial difficulties, according to an ANI report. 

Furthermore, Wijesekera underlined that industry, power production, and mass transit will be given priority until the delivery of the following shipments. As a consequence, throughout the course of the following week, a few gas stations will only receive a limited amount of diesel and gasoline. 

Economic crisis in Sri Lanka

The South Asian nation comprising 22 million people would continue to experience difficulties for a few more months, the Sri Lankan Prime Minister, Ranil Wickremesinghe told parliament on Wednesday. He also advised citizens to use gasoline carefully, The Guardian reported. 

Wickremesinghe said, “Our economy has faced a complete collapse.” He also added, “We are now facing a far more serious situation beyond the mere shortages of fuel, gas, electricity and food,” The Guardian reported.  

Amid Sri Lanka's financial downturn leaving it struggling to meet the basic needs of its citizens, the Sri Lankan government has given the green signal to use an additional $70 million from the $1 billion Line of Credit (LoC) given by India during the current crisis in order to buy necessities like food. As per Sri Lanka's Minister of Trade Nalin Fernando, this will be in addition to the $180 million worth of food supplies currently imported from India under the same scheme. 

On June 24, India sent a humanitarian package to Sri Lanka worth over SLR 3 billion, helping the island nation in its hour of need.