Petrol prices: LP 92 43.9% increase from Jan 2019 price

(Nethmi Rajawasam)

The Ceylon Petroleum Corporation (CPC) has increased the price of petrol (LP 92 Octane) by Rs. 20, from Rs. 157 to Rs. 177 rupees a litre; auto diesel (LAD) by Rs. 10, from Rs. 111 to Rs. 121 rupees a litre as of 21.12.2021. The hike is a result of the rupee depreciating as the global commodity prices continue to rise.

LP 95 Octane petrol was raised up by Rs. 19, from Rs. 180 to Rs. 203 rupees per litre. Super diesel (LSD) was raised by Rs. 15, from Rs. 144 to Rs. 159 rupees per litre.

Between January 2019 and December 2021, the price of 92 Octane petrol has increased by 43.9%, as the price on 11.01.2019 was Rs. 123; 95 Octane petrol has increased by 35%, from Rs.147 on 11.01.2019; diesel by 22.22% from Rs.99 and super diesel by 34.7% from Rs. 118 as of 21.12.2021.

The record high rates of money printing from February 2020 by the Central Bank has resulted in the steady depreciation of the Sri Lankan Rupee at the foreign exchange. A main reason for the increase in the printing of money by the Central Bank, according to the body, was the lack of “demand driven inflation”. The disclaimers issued by the public, media and classical economists against the decision to print more money, were ignored by the body.

Global commodity prices have also been rising due to the increase in money printing in the US. The aforementioned soaring of petrol prices in Sri Lanka takes place amidst the rising cost of living, gas blast scares and fears of the new Omicron variant spreading throughout Sri Lanka.

Minister of Energy Udaya Gammanpila was contacted by the team at MediaLK with regards to a comment relevant to this news story, however he could not be reached.