July 10, Colombo: Sri Lanka's state-run fuel supplier Ceylon Petroleum Corporation (CPC) has received the cabinet nod to proceed with the revision of fuel prices and accordingly, the fuel prices will be raised from midnight today (10).
Cabinet Spokesperson Minister Rajitha Senaratne stated that the decision was taken following a meeting between President Maithripala Sirisena and Minister of Finance and Mass Media Mangala Samaraweera at the cabinet meeting today.
Accordingly, the price of a liter of diesel has been increased by Rs. 7 and the new price will be Rs. 116.
The price of a super diesel will be increased by Rs. 9 to Rs. 128.
The price of a liter of 92 Octane petrol will be increased by Rs. 8 from current price of Rs. 137 to Rs. 145.
The price of a liter of Octane 95 petrol has been increased by Rs. 7 and the new price is Rs. 155.
The government introduced a price formula to determine the price of fuel, and the committee, which is empowered to decide the price under the formula, has met on July 05th and amended the fuel prices with effect from midnight July 5th.
However, the government later decided not to increase the fuel prices as determined by the price formula and CPC decided to wait until after the cabinet meeting to make a decision on the price revision after.
The cabinet of Ministers earlier this year granted approval to the Finance Ministry to introduce the cost based price formula for fuel, to execute this formula from 11th May 2018 and to update the fuel price before 5th day of third month based on the international prices of previous two months.
Under this method, fuel prices can go higher or lower according to the market price. When fuel prices go down in world market that benefit will be passed on to the public, the Ministry said.
Currently, the price of a barrel of crude oil in the world market has increased to 73 US dollars. It is reported that the price of fuel has gone up by 0.7% today. This is the highest fuel price increase compared to the last few years.