November fuel price hike narrows diesel pricing gap, widens petrol gap: report

November 4, 2026 at 2:02 PM
Add as Preferred Source

Sri Lanka’s November fuel price revision has narrowed the gap between the market price and the cost-recovery formula price of auto diesel, while widening the gap for Petrol 92, according to PublicFinance.lk.

The public finance information platform, operated by independent think tank Verité Research, revealed that despite the latest price increases, both fuel categories continue to be sold below their respective cost-recovery formula prices.

According to its Fuel Price Tracker, the market price of Petrol 92 stood at Rs. 424 per litre as of November 1, compared to the cost-recovery formula price of Rs. 481, reflecting a difference of Rs. 57 per litre.

In October, the market price of Petrol 92 was Rs. 414 per litre, while the formula price stood at Rs. 465, representing a gap of Rs. 51.

This indicates that despite a Rs. 10 increase in the retail price of petrol in November, the gap between the market price and the cost-recovery formula price widened by Rs. 6.

Meanwhile, the market price of auto diesel increased from Rs. 392 per litre in October to Rs. 397 in November.

However, its cost-recovery formula price declined from Rs. 467 to Rs. 459 per litre during the same period, reducing the pricing gap from Rs. 75 to Rs. 62 per litre.

PublicFinance.lk noted that the latest revision had significantly narrowed the diesel pricing gap, while the petrol price increase was insufficient to reduce the difference between the retail and formula prices.

The platform also reported that the November cost-recovery formula included a net tax component of Rs. 150 per litre for Petrol 92 and Rs. 67 per litre for auto diesel, after accounting for applicable subsidies.

According to PublicFinance.lk, the formula prices are calculated using Sri Lanka’s agreed fuel pricing formula based on Singapore benchmark prices.

The analysis draws on data from the Central Bank of Sri Lanka, Ceylon Petroleum Corporation (CEYPETCO), formula price calculations and information obtained from the Ministry of Finance. (Newswire)