Sri Lanka Sunday raised gasoline and diesel prices by slightly more than five percent to help recover losses from selling fuel below the cost of production, officials said.
Gasoline prices rose five rupees (five US cents) to 93 rupees a litre and diesel prices climbed three rupees to 61 rupees a litre, the state-run Ceylon Petroleum Corp said.
The company said it had asked for a 13.6 percent increase in the price of gasoline and 8.9 percent for diesel to offset subsidised fuel prices, but the government announced a lower increase.
Sri Lanka allowed a private company to enter the petroleum distribution market in 2002 but prices are decided by the state and the retailers are paid a subsidy for any losses.
A government spokesman said a plan to end the fuel subsidy and allow the market to determine prices could be considered next month.
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