Sri Lanka’s government has announced a reduction in fuel prices, which will provide relief to many citizens who have experienced shortages and increasing prices over the past year due to the country’s economic crisis. Minister of Power and Energy Kanchana Wijesekera stated that different categories of petrol and diesel will be sold at prices ranging from 8 to 26 percent lower, in line with an agreement with the International Monetary Fund to adjust fuel subsidies and prices based on production costs and global oil prices.
The move follows Sri Lanka’s approval of a $2.9bn IMF bailout programme earlier this month, which is a significant step in the country’s recovery from the crisis brought on by the pandemic and other troubles. However, petroleum industry trade unions are threatening to strike over a government decision to partially privatise the government-owned Ceylon Petroleum Corporation and give licences to three companies from the US, Australia and China to run fuel stations in Sri Lanka. The unions are protesting the plan, and people are rushing to fuel stations, fearing a supply shortage. The government’s plan is to get out of business and privatise key semi-state-owned companies to raise revenue to build its reserves and resume payments of foreign debt. However, some opposition political parties and trade unions oppose the idea, saying it could compromise national interests.
