2 Jul 2009, 1710 hrs IST

COLOMBO: Sri Lanka on Thursday raised fuel prices by up to 11%, but the increases were still insufficient to recoup the entire cost of production.

The higher grade 95 Octane gasoline was increased by 15 rupees to 148 rupees (1.3 dollars) a litre while diesel, commonly used for public transport was raised by 4.11% to 73.00 rupees (65 cents).

The new prices were put into effect in tandem by the state run Ceylon Petroleum Corporation and the Lanka Indian Oil Company (LIOC).

The LIOC controls one third of the oil retail pumps in the island. Officials said the government was still losing about 15 rupees a litre of oil while the LIOC had asked for a bigger increase which was turned down by the government.

0 (0)