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January 1 2016 begins with increases in prices of petroleum products by one of its biggest margins in recent in recent times.

Some of the major petroleum products are expected to go between 18 to 28 percent effective January 1.  The increase has come about, because of the recent Energy Sector Levy put on most of the products.

The Majority in Parliament on 23rd December, rushed through an emergency Energy Sector Levy Bill (2015) that will impose more taxes on petroleum products. It was introduced in the House Monday, December 21 by the Finance Minister and passed after two days.

If government had not introduced the recent levy, diesel would have rather gone down by 10 percent. But the fuel product is set to go up by at least 28 percent per liter. Petrol would have been reduced by some 5.5 percent per liter at the pumps but the levy has triggered an increase by least 27 percent.

LPG should witness about 18 percent jump in price per kilogram,

According to importers and marketers of petroleum products, decrease in prices of crude oil and petroleum products on the world market was not enough to offset the impact of the recently introduced Energy Sector Levy Act.

The new prices are expected to take effect January 1.

However because of the recent deregulation, prices might vary from one service station to the other.