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Slow Trot

June 10, 2006 (LBO) – Sri Lanka raise fuel prices from midnight Saturday after a two-month lag to offset a surge in global oil prices, a top official said. Sri Lankan guzzles around 30 million litres of petrol, 130 million litres of diesel and 18 million litres of kerosene each month.

-by Mel Gunasekera The price of gasoline will cost 93.00 rupees (up 5.00 rupees), diesel 61.00 rupees (up 3.00 rupees) and kerosene 43.50 rupees (up 5.00) rupees, Ceylon Petroleum Corp. Chairman Jaliya Medagama told LBO.

"With this price revision we are able to recover only around 640 million rupees of the 2-billion rupees we loose every month," Medagama said.

Medagama said CPC asked for higher increases – gasoline at 100.00 rupees, diesel at 69.00 rupees and kerosene to 67.00 rupees – during their monthly review meeting in May.

"The government has to balance the needs of everybody, though the treasury has informed us that they will not subsidise fuel anymore," he said adding that the difference may be offset by way of setting of taxes due to the government at the end of the year.

He said prices of kerosene, widely used by the poor for cooking,

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