Another Sign of Economic Worry: Fuel Prices to increase?

July, 10, 2019

The monthly pricing formula which regulates fuel prices in Sri Lanka is to be implemented today (10). Fuel prices are reviewed every 10th day of the Month under the fuel pricing mechanism introduced in May 2018.

Although fuel prices in the world market declined in June 2019, the State-run Ceylon Petroleum Corporation increased Octane 92 petrol by Rs.3 per litter to Rs.138, whilst the Lanka Indian Oil Corporation (LIOC) increased it by Rs.7.

However, currently the world market is observing a tidal rise in fuel prices. On June 10, 2019 a barrel of crude oil was sold at US $ 63.37. Today, the Brent crude oil market is priced at US $ 64.50 a barrel in the world market.

Meanwhile, prices of refined products in the Singapore market have increased significantly last month.

Hence, a barrel of petrol has increased from $ 65.20 to $ 71.30, a barrel of diesel has increased from $ 71.23 to $ 75.32 and a barrel of kerosene oil has gone up from $ 73.06 to $ 77.23.

Accordingly, a fuel price hike can be anticipated in Sri Lanka, according to this pricing formula.

Reports issued by the Economic Research Department of the CBSL with regard to fuel prices in the international market, on 10 June and 9 July 2019.