Fuel prices stable here despite soaring global prices

Disna MUDALIGE

The ending of the three decade conflict in the North and the East has resulted in an increase in the demand for oil, though the country's oil prices are comparatively low when compared to many other countries in the region, the Mass Media and Information Ministry Research Unit revealed.

Statistics of the unit reveal that the prices of a litre of petrol and diesel in Sri Lanka are relatively cheaper than the rate of petrol and diesel prices in Chennai, Delhi, Kolkata and Mumbai in India, Singapore and Thailand when compared to the Sri Lankan rupee.

The crises in Iran and other Middle Eastern countries have contributed for an emerging threat of an oil price hike in the global market. The price of an barrel of oil which was USD 108.93 last December has increased to USD 117.2 in February this year. This is an 8.27 percent increase. However, the prices of oil were not increased in Sri Lanka since last September.

Meanwhile, fuel consumption in Sri Lanka has gone up sharply with the rapid development taking place in the country in almost every sector after the war. The sales of petrol have increased by 14.3 percent during the recent past.

The increasing number of new vehicles including motor cycles and three wheelers has also contributed to the rising demand of oil in the country.

The increased demand in the Northern and Eastern provinces for electricity, growth in the fisheries industry and industrial sector have also contributed to the additional fuel demand in Sri Lanka..

The demand for diesel for power generation has also gone up during the recent past. The lack of rain experienced in the country had forced the power sector to depend more on fuel to generate power round the clock.

The oil crisis is a common challenge faced by many countries in the world. The price of one litre of petrol is Rs 137 in Sri Lanka. When calculated in Sri Lankan rupees this rate is Rs 164 in Chennai, Rs 152 in Delhi, Rs 155 in Kolkota, Rs 161 in Mumbai, Rs 140 in Thailand and Rs 204 in Singapore.

The price of a litre of diesel is Rs 84 in Sri lanka where as this amounts to Rs 100 in Chennai and Kolkata, Rs 95 in Delhi, Rs 102 in Mumbai, Rs 124 in Pakistan Rs 149 in Singapore and Rs 115 in Thailand when calculated in Sri Lankan rupees.