Sri Lanka Raises Fuel Prices on Global Hike, Sharp Rupee Decline
(Bloomberg) -- Sri Lanka raised fuel prices by over 40% after a currency float pushed the local rupee to record lows and amid a spike in global commodity costs.
The Ceylon Petroleum Corp increased the price of a liter of gasoline to 254 rupees ($1) from 177 rupees, and diesel to 176 rupees a liter from 121 rupees. The changes are effective Saturday.
Sri Lanka was already grappling with Asia’s highest rate of inflation before Russia’s war added to its woes. The country has been facing shortages of food and fuel amid a dollar squeeze, with queues seen outside gasoline stations and power cuts of as long as seven hours in certain parts of the island.
Separately, the Central Bank of Sri Lanka in a notice late Friday said foreign earnings from exported goods and services supplied overseas had to be remitted within 180 days. Authorities have taken a series of steps including a currency devaluation, import restrictions and raising policy rates, seen as creating conditions to opt for a bailout by the International Monetary Fund.
The nation has about $2 billion of foreign currency reserves against total debt repayment of as much as $7 billion for 2022. This includes a $1 billion dollar bond maturing in July.
Yields at Sri Lanka’s weekly 91-day Treasury-bill auctions rose by nearly 100 basis points on March 9, signaling that the monetary authority may raise borrowing costs further.
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
KEEPING THE ENERGY INDUSTRY CONNECTED
Subscribe to our newsletter and get the best of Energy Connects directly to your inbox each week.
By subscribing, you agree to the processing of your personal data by dmg events as described in the Privacy Policy.
More oil news

Stocks Slide as Tariff Angst Adds to Price Worries: Markets Wrap

China’s Oil Teapots Cut Runs to Pandemic Levels After Sanctions

China Refiners Set to Resell US Oil Cargoes After Tariff Blitz

Shell starts up new facility in UK North Sea, restoring production from the Penguins field

Oil Falls to Lowest Settlement Price of 2025 as Traders Flee

Oil Falls After Trump Delays Canada, Mexico Tariffs by a Month

Wright Confirmed to Lead Energy Agency Key to Trump’s Plans

Oil Rises as Trump Slaps Tariffs on Biggest Crude Supplier to US

UAE’s Adnoc Aims to Buy Nova Chemicals, Roll Into Deal With OMV
