Colombo, Jul 18 (IANS): Sri Lanka's state-owned Ceylon Petroleum Corporation (CPC) and the Lanka Indian Oil Corporation (LIOC) have reduced the retail price of fuel.

The two state-owned oil companies reduced the retail price of fuel from Sunday evening, Xinhua news agency reported.

The price of a litre of Octane 92 petrol will be reduced by Rs 20, and the new retail price will be Rs 450 ($1.25).

Octane 95 petrol will sell for Rs 540 per litre, down by Rs 10.

The diesel price will be slashed by Rs 20 per litre, thus the new price will be Rs 440, and the price for super diesel will be Rs 510 a litre following a reduction of Rs 10.

The Ministry of Power and Energy also introduced a new digital system to systematise the distribution of fuel from July 21. Both the CPC and the LIOC will take part in the scheme.

Sri Lanka has been facing crippling fuel shortage since February.

In late June, CPC suspended distributing fuel for private vehicles.

CPC will start fuel distribution from July 21, following the arrival of petrol and diesel shipments. (1$ equals 361 Sri Lankan rupees).