Categories: General Studies

Sri Lanka Economic Crisis: Fuel prices Increase in Sri Lanka by 15%

Sri Lanka Economic Crisis increases with increase in fuel prices

The fuel prices in Sri Lanka Hiked on Sunday, creating more panic for the ordinary people amid the economic crisis. The Ceylon Petroleum Corporation raised the price of diesel by 15% up to Rs 460 per liter and rising petrol up to 22% which is Rs 550. The big announcement for the people came out after the Energy Minister Kanchana Wijesekera set that there would be an indefinite delay in the new shipments of oil. According to the Energy Minister of Sri Lanka, the oil due for the last week has not arrived due to the banking reasons in Sri Lanka and it is scheduled to arrive next week.  

The officials of Sri Lanka have decided that the nation will allow the foreign companies to distribute fuel in a bid to ease the crippling shortage of fuel which has stopped the economic activities in the island nation. If the economic activities stay paralyzed like this the foreign debt will continue to increase. The Sri Lankan Government is said to prepare a cabinet paper that would allow more fuel distributors and is aiming to permit new foreign companies to operate the state-run Ceylon petroleum filling stations. The current distributor of fuel for Sri Lanka is CPC and Indian oils Sri Lanka unit only. 

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According to the Energy Minister, the new distributors will be asked to import oil on credit as the nation is already suffering from an economic crisis. Sri Lanka is in talks with the International monetary fund as well as bilateral creditors such as India and China for new funds to pay for imports. 

The current depth of Sri Lanka is nearly 6 billion and the country has to pay several import bills and stabilize its currency which has fallen to 43% against the dollar in 2022. Sri Lanka’s Power and Energy Minister Kanchana Wijesekera tweeted on Saturday, “Regret to inform that CPC has informed me that the suppliers that had confirmed petrol, diesel, and crude oil shipments to arrive earlier this week and next week has communicated the inability to fulfill the deliveries on time for banking and logistical reasons.” 

FAQs related to Sri Lanka Fuel price rise

1. Why are fuel prices rising in Sri Lanka?
Ans. The fuel prices rise in Sri Lanka as the biggest fuel supplier Sri Lanka put up its prices by 15% and as the Island is already suffering from an economic crisis the situation got worse.

2. Why did Sri Lanka impose fuel restrictions on private vehicles?
Ans. Sri Lanka imposes fuel restrictions on private vehicles due to the rising economic crisis and fuel scarcity on the island.

3. What is the price of 92 octane petrol in Sri Lanka?
Ans. The new price of 92 octane petrol is set by the state-run Ceylon Petroleum Corporation, which increase the petrol price to 15% up to Rs 460 per liter.

FAQs

Why are fuel prices rising in Sri Lanka?

The fuel prices rise in Sri Lanka as the biggest fuel supplier Sri Lanka put up its prices by 15% and as the Island is already suffering from an economic crisis the situation got worse. 

Why did Sri Lanka impose fuel restrictions on private vehicles?

Sri Lanka imposes fuel restrictions on private vehicles due to the rising economic crisis and fuel scarcity on the island. 

What is the price of 92 octane petrol in Sri Lanka?

The new price of 92 octane petrol is set by the state-run Ceylon Petroleum Corporation, which increase the petrol price to 15% up to Rs 460 per liter

priyankadasgupta

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