Fuel prices in Sri Lanka increased by almost 4% on Sunday, contributing to inflation that more than doubled last month as a result of the Middle East conflict.
Fuel prices in Sri Lanka have increased by over 35% since March, and rates for gas and electricity have also gone up by a comparable amount.
In response to supply interruptions, the island has also rationed fuel.
The price of kerosene, which is used in agricultural machinery, was raised by 10 rupees to 265 rupees ($0.85) per liter on Sunday by the state-owned Ceylon Petroleum Corporation.
The price of petrol increased by 12 rupees to 410 rupees ($1.32). Diesel’s price increased by 10 rupees to 392 rupees.
According to official data, rising energy prices caused inflation to more than double, hitting 5.4% in April.
Food prices increased along with transportation costs due to fuel and electricity tariffs, according to the Department of Census and Statistics.
After running out of foreign exchange reserves to cover the cost of necessary imports like food, fuel, and medications in 2022, the island has been gradually recovering.
But in November, a cyclone struck the island severely, killing at least 643 people and affecting over 10% of its 22 million inhabitants.
The World Bank estimates that the storm directly damaged buildings and agriculture to the tune of $4.1 billion.
With the aid of a $2.9 billion IMF bailout that was agreed upon in early 2023, the nation has been stabilizing its precarious economy; however, recovery efforts have been severely hampered by high energy prices.
