Govt. hikes fuel prices

Tuesday, 21 December 2021 02:51 - - {{hitsCtrl.values.hits}}

The Government last night increased fuel prices across the board in a bid to stem the erosion of foreign exchange as well as quell demand.

Petrol 92 was increased by Rs. 20 to Rs. 177 per litre, Petrol 95 by Rs. 23 to Rs. 207, auto diesel by Rs. 10 to Rs. 121 and Super Diesel by Rs. 15 to Rs. 159. Kerosene will cost Rs. 10 more and new price is Rs. 87 per litre.

This is the second revision this year, a move likely to make the Government more unpopular in terms of managing macroeconomic issues though cost-reflective pricing is broadly encouraged by economists and others. The previous increase was in June.

The hike comes after the Central Bank had recommended to the Finance Minister to increase prices of petrol by Rs. 35, diesel by Rs. 24 and kerosene by Rs. 11 per litre.

Energy Minister Udaya Gammanpila ahead of the midnight hike opined CBSL move might have been done after considering the economic impacts, particularly on the depleting foreign reserves.

“Historically, the Finance Ministry is vested with the powers to decide on the fuel prices in the country. Although it is an extra burden to the people that are already battered by rising cost-of-living, imagine all vehicles and industries coming to a halt – now that economic implication is much higher than the price increase,” Gammanpila added.