Sri Lanka slashes petrol prices by Rs 40; no change in diesel price

The Sri Lankan government on Saturday slashed the price of petrol by Rs 40 per litre, making diesel more expensive than petrol for the first time in the country.

The price reduction came as opposition parties in recent days took the government to task for not implementing the price formula despite the lower global oil prices.

The retail price of petrol has been reduced from LKR (Sri Lankan rupees) 450 per litre to LKR 410 per litre while the cost of diesel continued to remain the same at LKR 430.

The new prices of petrol would be Rs 410 Sri Lankan rupees, Energy Minister Kanchana Wijesekara said.

With the move, the price of diesel for the first time in Sri Lanka is more than the price of petrol.

Diesel is used widely for public transport and vehicles used for consumer trade which has a direct impact on cost of living.

Following the government's decision, the Lanka Indian Oil Corporation has also said that it will reduce the petrol price along with the government price.

Sri Lanka is experiencing hyperinflation amidst the economic crisis, the worst since its independence in 1948.

Inflation in September was 69.8 per cent, up from the 64.3 per cent recorded in August.