Latest data released by the Central Bank of Sri Lanka (CBSL) indicates that when compared to the same period last year, petrol sales in Sri Lanka during the first four months of this year has increased by 16.4 per cent or 34,000 metric tons after prices were reduced.

During the first four months of this year 309,000 metric tons of petrol has been sold in the local market.

However, during the first four months of 2015 local sales of diesel has dropped by 22.7 per cent to 173,000 metric tons due to hydro-power generation.

In the month of April alone petrol sales in Sri Lanka has risen by 20.3 per cent or 14,000 metric tons to 84,000 metric tons.

Fuel prices were slashed drastically s soon as the new interim government came into power in Sri Lanka in January. By now crude oil prices have dropped significantly in the world market.

However, since the Ceylon Petroleum Corporation does not sell fuel at world market comparative prices, it has become a loss incurring entity and a burden to the government.