COLOMBO (Xinhua) -- Sri Lanka's state-owned Ceylon Petroleum and India's Lanka Oil Corporation have lowered retail prices of fuel effective from Sunday night.

The price of a liter of 92-octane petrol has been reduced by 20 rupees to a new retail price of 450 rupees ($1.25), while 95-octane petrol is sold for 540 rupees per liter after a 10-rupee price cut.

The price of diesel has been reduced by 20 rupees per liter to the new price of 440 rupees, while the price of super diesel is 510 rupees per liter after its price cut by 10 rupees.

The Energy Ministry has also introduced a new digital system to regulate fuel distribution, effective from July 21.

The Environmental Protection Commission and the Indian Lanka Petroleum Corporation will be involved in the plan.

Sri Lanka has been facing severe fuel shortages since February. In late June, Ceylon Petroleum suspended fuel distribution to private vehicles.

Ceylon Petroleum will start distributing fuel from July 21 after the arrival of shipments of petrol and diesel.