Sri Lanka Hikes Fuel Prices To All-Time High Under New Pricing Formula

Sumaira FH Published May 24, 2022 | 02:35 PM

Gas and diesel prices in Sri Lanka have been adjusted to reflect a new pricing formula adopted by the government as it struggles to tackle the worst economic and energy crises in the country's history, Energy Minister Kanchana Wijesekera said on Tuesday

MOSCOW (UrduPoint News / Sputnik - 24th May, 2022) Gas and diesel prices in Sri Lanka have been adjusted to reflect a new pricing formula adopted by the government as it struggles to tackle the worst economic and energy crises in the country's history, Energy Minister Kanchana Wijesekera said on Tuesday.

"Fuel pricing formula that was approved by the cabinet was applied to revise the prices. Price revision includes all costs incurred in importing, unloading, distribution to the stations and taxes. Profits not calculated and included," the minister said on Twitter.

Gas prices increased by about 18% and diesel prices by 26%, according to the price chart posted by Wijesekera. One liter (0.26 gal) of gas 92 octane now costs 420 Sri Lankan rupees ($1.17) and one liter of gas 95 octane 450 Sri Lankan rupees, while car diesel costs 400 Sri Lankan rupees per liter.

The formula will be applied every fortnight or monthly, the minister said.

In addition to fuel pricing, the Sri Lankan cabinet meeting on Monday night also approved the revision of transport and services fees, as well as other changes in the public sector to minimize energy demand, he added.

"Public sector workforce will be called to work on the direction of the head of the institute from today. Work from home will be encouraged to minimize the use of fuel and to manage the energy crisis," Wijesekera said.

Months of enduring economic and energy crises triggered political unrest in Sri Lanka in recent weeks. Shortages of foreign Currency as tourist flows dried up during the COVID-19 pandemic prevented the country from purchasing enough fuel. The pandemic has also negatively impacted remittances from Sri Lankans working abroad. There is an acute shortage of food and basic necessities, including fuel and gas, with many parts of the island nation facing continuous power blackouts. Sri Lanka's external debt is estimated at $51 billion.