To address the fuel crisis, the Ministry of Energy has changed the fuel limits announced for vehicles.
Minister Kanchana Wijesekera announced today that the fuel supply limits for vehicles have been revised.
The revised fuel limits are as follows:
Rs 2,500 for motorcycles
Rs 3,000 for three-wheelers
Rs 10,000 for other vehicles
Crisis-hit Sri Lanka raised the price of petrol by 24.3% and diesel by 38.4% today, a record increase in fuel prices in the midst of the country’s worst economic crisis due to a lack of foreign exchange reserves.
With the second price increase since April 19, the most commonly used Octane 92 petrol would now cost 420 rupees (USD 1.17) and diesel 400 rupees (USD 1.11) per litre, an all-time high.
Ceylon Petroleum Corporation, the state fuel entity, decided to raise the Octane 92 petrol price by 24.3 percent, or 82 rupees, and the diesel price by 38.4 percent, or 111 rupees per litre (CPC).
“The fuel price will be revised at 3 a.m. today.”
“The Cabinet-approved fuel pricing formula was used to revise the prices,” Power and Energy Minister Kanchana Wijesekara said on Twitter.
“All costs incurred in importing, unloading, distribution to stations, and taxes are included in the price revision.”
“The Cabinet also approved the appropriate revision of transportation and other service charges.”
“The formula will be used every two weeks or monthly,” he said.
The increase comes as the public continues to face long lines at fuel stations due to shortages.
The retail price of fuel has also been raised by Lanka IOC, the Sri Lankan subsidiary of India’s oil major Indian Oil Corporation.
“We have raised our prices to match the CPC,” LIOC CEO Manoj Gupta told Press Trust of India.
Meanwhile, auto-rickshaw operators announced that they would raise their rates to 90 rupees per first kilometer and 80 rupees per subsequent kilometer.
To cut costs, the government announced that heads of institutions would be given discretion over which employees would be required to report physically.
The others should be allowed to work from home.
Since 2002, Lanka IOC has been operating in Sri Lanka.
As the country faces a severe foreign exchange crisis to pay for imports, Sri Lanka has been considering various options to facilitate measures to prevent fuel pumps from going dry.
The island nation is experiencing unprecedented economic turmoil, the worst since its independence from the United Kingdom in 1948.
It is suffering from a scarcity of almost all essentials due to a lack of dollars to pay for imports.
A crippling lack of foreign reserves has resulted in long lines for fuel, cooking gas, and other necessities, while power outages and soaring food prices have added to the people’s misery.
The economic crisis has also triggered a political crisis in Sri Lanka, with President Gotabaya Rajapaksa facing calls to resign.The crisis has already forced the president’s elder brother, Prime Minister Mahinda Rajapaksa, to resign on May 9.
Inflation approaching 40%, food, fuel, and medicine shortages, and rolling power outages have sparked nationwide protests and a plummeting currency, leaving the government short of the foreign currency reserves required to pay for imports.