Sri Lanka raises fuel prices by 25% as war bites

Sri Lanka raised fuel prices by 25 percent on Sunday the second increase in two weeks, as the country prepared for more impact from the war in the Middle East.



Regular petrol was increased to $1.30 per litre, up from $3.38, while diesel, the fuel commonly used for public transport, rose by $.084 to $4.07.



Last week, the government ordered an eight percent increase in retail fuel prices and introduced rationing to limit consumption.



"We hope to achieve a 15 to 20 percent reduction in fuel consumption with the latest increase," an official at the Ceylon Petroleum Corporation said.



He said President Anura Kumara Dissanayake told them last week that the country must prepare for a prolonged conflict in the Middle East that could affect the island's energy supplies.