Sri Lanka allows private companies to import fuel

The Sri Lankan government on Tuesday raised the petrol price by 24.3 percent and diesel by 38.4 percent, reports PTI.

Sri Lankan government has allowed private companies to import fuel, Power and Energy Minister Kanchana Wijesekera said on Friday, a move aimed at easing the burden on cash-strapped state-run fuel retailer Ceylon Petroleum Corporation (CPC). The severe depreciation of the Sri Lankan rupee against the US dollar, and the soaring global prices of crude following the ongoing conflict in Ukraine were some of the reasons why the state-owned entity has been struggling to import fuel. “Approval was given to all the Private Bunker Fuel Operators to import and provide diesel and fuel oil requirements of industries to function their generators and machinery,” Wijesekera said in a tweet.

“This will ease the burden on CPC and fuel stations providing in bulk. The meeting was held yesterday,” he added.

In April, the Sri Lankan Cabinet agreed to amend the Petroleum Products Act making provisions to issue licenses to properly identified parties to import fuel which will end an import monopoly held by the CPC, according to the online business and political news portal EconomyNext.

The Sri Lankan government on Tuesday raised the petrol price by 24.3 per cent and diesel by 38.4 per cent, a record hike in fuel prices amid the country's worst economic crisis due to the shortage of foreign exchange reserves.

With the second fuel price hike since April 19, now the most-used Octane 92 petrol would cost 420 rupees (USD 1.17) and diesel 400 rupees (USD 1.11) a litre, an all-time high.