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Sri Lanka gets OPEC help to ease its hefty fuel bill, even as a tariff hike for diesel is with Cabinet and an increase in water tariffs also on the cards.
Treasury Secretary Dr. P.B. Jayasundera said Friday that diesel prices will have to go up by at least Rs.
6 to Rs. 7 a litre and the request was already up for Cabinet approval.
Diesel, with 120 mn litres used each month for mainly power generation and transport, is subsidised at over Rs. 10 on a litre.
That’s about the increase the Ceylon Petroleum Corporation has recommended to cover costs, taking prices from Rs. 36.00 to Rs. 46.50, if implemented.
Ceypetco also says petrol will have to go up by Rs. 1.50 to Rs. 69.50 a litre to cover costs for August. About 30 mn litres of petrol is used each month.
Petrol prices were jacked up by Rs.11.50 a month ago, completely lifting the subsidy. But Treasury Secretary Dr. P.B Jayasundera says petrol will not be touched this time.
“We need an increase in diesel prices immediately and