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Petro Shock

Fuel prices are being jacked up from midnight on Sunday, with petrol up by Rs.
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6.00 a litre to Rs. 80 and diesel up by Rs. 4.00 a litre to Rs. 50, just a month after the last price hike.
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Fuel prices are being jacked up from midnight on Sunday, with petrol up by Rs. 6.00 a litre to Rs. 80 and diesel up by Rs. 4.00 a litre to Rs. 50, just a month after the last price hike.

Kerosene is up by Rs. 2.00 to Rs. 30.50 - cross-subsidised by petrol, and all types of furnace oil by Rs.

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2 a litre, the state owned Ceylon Petroleum Corporation said on Sunday.

A monthly pricing formula pegged to world crude costs was suspended since last September, with fuel price revisions becoming a political hot potato amidst a soaring cost of living

The government subsidy on fuel touched Rs. 16 billion last year, or 1 percent of GDP as international crude oil prices rose but retail prices were not adjusted in step.

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The Treasury has racked up subsidy dues it owes Ceypetco to the tune of Rs.


5 bn from January to May this year, only just settling Rs.

14 bn in outstanding claims for 2004 against unpaid taxes.

Sunday’s 7.5 percent price hike is the second since May this year, when prices went

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