Sri Lanka's CPC hikes kerosene prices to 253 SLR to recover losses

To reduce losses, Ceylon Petroleum Corporation (CPC), a state-owned fuel distributor in Sri Lanka, increased the price of kerosene as of Sunday midnight. The CPC declared in a statement that a litre of kerosene will now cost 253 Sri Lankan rupees (SLR), or 0.7 US dollars, Xinhua reported.

Many unprivileged groups consume kerosene, which was formerly sold at a discounted price of 87 rupees.

Speaking in the Sri Lankan parliament, Minister of Power and Energy Kanchana Wijeskera announced plans to increase the cost of kerosene while providing low-income families with a subsidy. The minister claimed that it costs 421 rupees to generate one litre of kerosene.

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Wijeskera said, "Selling kerosene at a subsidised rate is one of the main reasons why the CPC makes a loss," IANS reported.

Sri Lanka has been in economic turmoil for many months. After months of food, fuel, and medication shortages, the island nation missed payments on its $51 billion foreign debt in April and has been requesting assistance from the International Monetary Fund (IMF).

The IMF said that a delegation will visit the South Asian island country next week to begin aid negotiations that were put on hold due to the unrest that forced the country’s former president, Rajapaksas Gotabaya, to resign and flee the country, AFP reported.

After months of hardships brought on by shortages of necessities, rolling blackouts, and skyrocketing prices, an unparalleled economic collapse has spurred many massive anti-government rallies this year.

A 22 million-people country has also endured protracted blackouts and the rising cost of living challenges as a result of shortages and a currency meltdown that increased prices.

(With inputs from agencies)

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