Crisis-hit Sri Lanka on Tuesday raised the price of petrol by 24.3% and diesel by 38.4%, a record increase in fuel prices amid the country’s worst economic crisis due to lack of foreign exchange reserves.
with other increase in fuel prices The highest petrol price will be till April 19 420 and diesel 400 rupees per litre. At least in the short term, the hike is likely to accelerate gallop inflation.
Kanchana Vijayasekera, Sir Lankani The Minister of Power and Energy, in a message on Twitter, said that petrol prices will increase by 20%-24% while diesel prices will increase by 35%-38% with immediate effect.
“The cabinet also approved the revision of transport and other service charges accordingly,” he said.
Additionally, Wijesekera also said that people would be encouraged to work from home “to reduce fuel use and manage the energy crisis” and only when instructed by the head of the institution, a public sector official. Will work from office.
Economists said food and transportation price increases would flow through food and other goods. Annual inflation in the island nation rose to 33.8% in April, compared to 21.5% in March, according to government data released on Monday.
The development comes after Sri Lanka was hit by its worst economic crisis since independence, as a severe foreign exchange crunch has halted imports and plagued the country with fuel, medicine shortages and power cuts.
The financial crisis stemmed from the confluence of the Covid-19 pandemic with a tourism-dependent economy, rising oil prices and populist tax cuts by the government of President Gotabaya Rajapaksa and his brother Mahinda, who resigned as prime minister this month. .
(with inputs from agencies)