Govt set to hike prices for renewing registration of vehicles older than 15 years from April 1

The price of diesel has increased by Rs 75 per litre, while the price of petrol has increased by Rs 50 per litre, according to the Lanka Indian Oil Company.

With this hike, the price of petrol has risen to Rs 254 per litre and the price of diesel has risen to Rs 214 per litre, marking an all-time high in fuel costs at a time when the island country is experiencing its worst economic crisis in decades.

Due to the significant depreciation of the Sri Lankan Rupee, the Lanka Indian Oil Company (LIOC), the Sri Lankan subsidiary of India’s oil major Indian Oil Corporation, has increased retail prices of petrol and diesel with effect from Friday. This is the third time the firm has increased fuel prices in a month.

The retail price of diesel has been hiked by Rs 75 per litre, while the retail price of petrol has been raised by Rs 50 per litre, according to LIOC.

With this hike, the price of petrol has risen to Rs 254 per litre and the price of diesel has risen to Rs 214 per litre, marking an all-time high in fuel costs at a time when the island country is experiencing its worst economic crisis in decades.

The Sri Lankan Rupee has dropped by Rs 57 versus the US Dollar twice in the last seven days. This has had a direct influence on the price of oil and gasoline, causing them to rise by the same amount per litre. Oil and gas prices are also rising as western nations react to Moscow’s invasion with a slew of sanctions aimed at isolating and isolating Russia from global oil markets, according to Manoj Gupta, Managing Director of LIOC.

The Sri Lankan government does not provide any subsidies to LIOC, and its losses are computed based on the product’s true landed cost after paying all relevant customs, taxes, and other statutory levies, including handling costs.

Given current worldwide pricing, our present losses are outrageous, leaving no choice but to raise the cost of gas oil and gasoline. However, Gupta noted, it is a terrible truth that even with this price hike, there would still be significant losses at current international rates.

Ceylon Petroleum Corporation, a state-owned gasoline distributor that competes with LIOC, has yet to announce any price increases.

As part of its continuous attempts to alleviate the present fuel and energy crisis, the Sri Lankan government agreed last month to acquire 40,000 metric tonnes of petrol and diesel from the Indian Oil Corporation.

Since 2002, the Lanka IOC, a Sri Lankan subsidiary of India’s largest oil company, Indian Oil Corporation, has been operating in Sri Lanka.

Sri Lanka has been considering several possibilities to enable efforts to prevent petrol pumps from turning dry in recent weeks, as the nation has been dealing with a serious foreign currency problem in order to pay for its imports.

The government sought the LIOC to import petroleum as the crisis loomed.

The LIOC had previously refused the request because they, too, were experiencing a foreign currency scarcity.

Sri Lanka is now experiencing a serious foreign currency crisis as its reserves continue to dwindle.

Due to a scarcity of money to pay for imports, the nation is experiencing a shortage of practically all basics.

Additionally, power cuts are enforced during peak hours due to a lack of fuel to drive turbines by the state power agency.

Because the electrical board has substantial overdue obligations, the state fuel organisation has halted oil deliveries.

The lone refinery in the country was recently shut down due to a lack of funds to pay for crude imports in dollars.

In January of this year, the Indian government announced a billion-dollar aid package for Sri Lanka, in addition to other forms of balance-of-payments assistance.

Fewnews Bureau

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