Lanka IOC increases diesel, petrol prices

COLOMBO: Lanka IOC announced that it will increase the price of diesel and petrol with effect from midnight, due to the significant depreciation of the rupee.

LIOC said that the retail selling price of diesel will be increased by Rs. 75 per litre and petrol by Rs. 50 per liter.

Issuing a statement, it said that the Central Bank of Sri Lanka had announced flexibility in foreign exchange rate and the Sri Lankan Rupee has depreciated twice in last 7 days against the dollar, initially to Rs. 230 per USD and then again to an exorbitant level of Rs. 260 from Rs. 203 previously.

“Even after this upward revision in exchange rates by over 28%, the inflow of US dollar has not improved much in the banking channels during past two days. The banks are, however, offering USD at the rate of Rs 260 and even much beyond. On the other side, Oil has also been rising sharply on the prospects for a full embargo on Russian oil and products and reaching near to the highest levels seen earlier in 2008.”

With fear of the supply scarcity amidst the Ukraine-Russia war, crude oil continues to be on the boil, threatening to reach unforeseen levels. It is gathered that the international market is rising to account for the supply disruption to at least part of the nearly 4 million barrels per day of oil that is sold by Russia into the U.S. and EU, the statement said.