The New Zealand-based Company, which owns the Shell and Z retail network, Z Energy has announced to reduce the prices of petrol and diesel at its Shell and Z branded sites by 5c a litre on diesel and 2c on petrol with immediate effective.

The new prices will be: Ultra 205.9, V-Power 212.9 and Diesel 145.9. The Petrol and diesel prices in the world market had increased by 20% in the past six months. Market analysts believe that a further price hike may have an adverse impact on the economy.

The BP has also announced to drop its fuel price. The Managing Director of BP, Mike McGuinness said that there has been a decrease in the price of crude oil, which has been sold on a price of refined petrol and diesel.

The new prices of BP are: Ultra / 91 Unleaded 205.9, V-Power 212.9/ 95 Unleaded 213.9, Diesel 145.9.

Meanwhile, the government has decided to continue to maintain the current prices. Petroleum Industries Minister, Susil Premajayantha, said that the Petrol and diesel prices will not be increased immediately. He added that the sale of petrol, kerosene and diesel at the current prices has resulted in heavy losses for the Petroleum Corporation.