Fuel prices up but no hike in transport cost: Finance Ministry

Tuesday, 12 February 2019 00:02 - - {{hitsCtrl.values.hits}}

The retail prices of fuel have been increased with immediate effect based on the fuel pricing formula, the Finance Ministry said.

Accordingly, the prices of fuel were increased as follows:

Petrol (Octane 92) will be increased by Rs. 6 a litre and the revised price is Rs.129; Petrol (Octane 95) will now be sold at Rs. 152, after an increase by Rs. 5 a litre. The price of diesel should be increased by Rs. 9.59 in keeping with the latest global market price of crude oil, the Ministry said.

However, one litre of Auto Diesel will be increased by Rs. 4 and the new price would be Rs. 103, while one litre of Super Diesel will be increased by Rs. 8 and the new price would be Rs. 126.

The price of Lanka Kerosene will remain at Rs. 70 per litre.

Despite the fuel price revision, the Ministry said there would be no increases in transport charges.

The Finance Ministry said fuel prices were reviewed on the 10th of every month, under the fuel pricing mechanism introduced in May 2018.

When the oil prices were upwardly revised last on 10 October 2018, the price of a barrel of crude oil had gone up to $84. It came down to $70 by November 2018 and it was reported to be $53 when the fuel prices were last reduced on 10 January.

When the fuel prices were increased for the first time in May 2018 under the pricing formula, the local selling price of Petrol was Rs. 137 per litre, and by now it has come down to Rs. 129 per litre.

The Diesel price, which was at Rs. 129 per litre in May 2018 has today has come down to Rs. 103 a litre. However, unfortunately, the bus fare, three wheeler fare and other transport charges were unreasonably increased by a higher percentage than the fuel price revision.

Under these circumstances, the Government stressed that there is no reason for any fare increase in any of the transport or other logistics sectors, on par with this latest fuel price revision.

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