COLOMBO has raised fuel prices by 25%, the second increase in two weeks, as the country prepares for more impact from the conflict in the Middle East.
Regular petrol was increased to 398 rupees (RM4.99) per litre yesterday, up from 317 rupees (RM3.97), while diesel, the fuel commonly used for public transport, rose by 79 rupees (99 sen) to 382 rupees (RM4.79).
Last week, the government ordered an 8% increase in retail fuel prices and introduced rationing to limit consumption.
“We hope to achieve a 15% to 20% reduction in fuel consumption with the latest increase,” an official at the Ceylon Petroleum Corporation said.
He said President Anura Kumara Dissanayake told them last week that the country must prepare for a prolonged conflict in the Middle East that could affect the island’s energy supplies.
The president ordered a four-day working week from last Wednesday and asked employers to reintroduce work-from-home arrangements where possible.
The Strait of Hormuz, a key waterway through which some 20% of global oil exports pass in peacetime, has been effectively closed by Iran in retaliation over the US and Israeli conflict against it.
Sri Lanka imports all of its oil and also buys coal for electricity generation. The country buys refined petroleum products from Singapore, Malaysia and South Korea, while crude oil for its Iranian-built refinery is sourced from the Middle East.
The government has warned that the fighting in the Middle East, and a prolonged conflict, could seriously undermine its efforts to emerge from the economic meltdown of 2022. — AFP
