Kathmandu. Colombo: Sri Lanka on Monday slashed domestic liquefied petroleum gas (LPG) prices by nearly a quarter as a result of the conflict in the Middle East. This has put more pressure on a country that is trying to recover economically.

The government has increased the price of cooking gas due to rising prices in the global market. Sri Lanka is heavily dependent on oil and gas imports and has to buy coal from outside sources to generate electricity. Against this backdrop, there are growing concerns that the long-running war in the Middle East could weaken the country’s economy again.

Monday’s price adjustment follows an eight per cent increase last month, signalling continued rising energy costs. A private company, which accounts for nearly a quarter of the domestic LPG market, has increased its retail price by 23 per cent to Rs 5,700 from Rs 4,630 (Sri Lankan currency).

Similarly, the price of 12.5 kg cylinder has been increased from Rs 3,990 to Rs 4,765. This is an increase of 19.42 percent. A company spokesperson said that there is sufficient supply for the month of April and the increase in the price of LPG in the international market and increase in transportation cost are the main reasons for the price adjustment.

Sri Lanka has already hiked oil and electricity prices by more than a third as global energy markets were hit by the US-Israel offensive against Iran.

In particular, crude oil and gas supplies have been hit by the conflict-triggered shutdown of the Strait of Hormuz, a key route for the world’s energy supply. Normally, about 20 percent of the world’s energy exports go through this route.