Ceylon Petroleum Corporation (CPC) is currently incurring a loss of Rs. 129 on every litre of auto diesel and Rs. 60 on every litre of Octane 92 petrol sold, CPC Chairman D.J. Rajakaruna said while explaining the latest fuel price increase.

According to Rajakaruna, the actual cost of supplying a litre of auto diesel is around Rs. 536, while it is sold at Rs. 407, resulting in a loss of Rs. 129 per litre. He said a litre of Octane 92 petrol costs approximately Rs. 494 to supply but is sold at Rs. 434, resulting in a loss of Rs. 60 per litre.

The CPC Chairman said the Government had been absorbing a significant portion of these losses in recent months in an effort to shield consumers from the impact of rising global oil prices.

He noted that the Government had allocated Rs. 57 billion to support fuel pricing, but the funds set aside for this purpose are expected to be exhausted by the end of June.

Rajakaruna said the increase in global oil prices and the rise in the country’s fuel import bill had contributed to the need for a fuel price revision. He warned that continuing to sell fuel at heavily subsidised rates would place further pressure on the economy and foreign exchange reserves.

He also urged the public to reduce fuel consumption where possible, stating that excessive fuel use could worsen pressure on the rupee and lead to broader economic consequences.

Rajakaruna further said CPC would strengthen monitoring of fuel distribution through the QR code system and take action against fuel station operators who fail to comply with the required procedures. (Newswire)

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Sri Lanka’s oil import bill has risen more than six times between February and May, President Anura Kumara Dissanayake revealed, warning of mounting economic challenges. 

He noted that while the actual cost of a litre of diesel is around Rs. 720, it is being supplied to the public at Rs. 392, leaving the government and the Ceylon Petroleum Corporation (CPC) to absorb heavy losses.

Speaking at the Nuwara Eliya District Special Coordinating Committee meeting, the President said oil imports cost USD 98 million in February, USD 216 million in March, USD 368 million in April, and are projected to reach USD 522 million in May.

“Compared with February, oil imports have increased more than six times,” he stressed.

He explained that although the government bears Rs. 100 per litre, the Petroleum Corporation receives only Rs. 492, far below the actual cost, resulting in significant losses. 

Past mismanagement, he said, has left the CPC with a deficit of Rs. 84 billion, now transferred to the Treasury.  

President Dissanayake further said that electricity tariffs have also been affected by rising oil prices. 

The President noted that while bills increased by 18%, more than 95% of consumers were shielded from the impact, with only about 5% experiencing higher costs. 

However, he cautioned that the Treasury cannot indefinitely subsidize the Petroleum Corporation and the Electricity Board. 

“They need to be made efficient, and other matters must be managed in ways that benefit the people,” he said.

The President stressed the need to reduce fuel consumption, pointing out that unchanged usage at higher prices would only accelerate dollar outflows. 

He said the government has already taken decisions aimed at curbing consumption and is working to provide solutions on fuel management swiftly. (Newswire)

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A 35‑year‑old resident of Kochchikade was arrested on Tuesday (31), after being found in possession of 150 litres of diesel without a permit.

The arrest was made during a raid in the Daluwakotuwa area under the Kochchikade Police Division, carried out by officers of the Negombo Division Crime Investigation Unit based on received information.

The suspect was presented to the Negombo Police Station, and the Negombo Police are conducting further investigations. (Newswire)

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A 41-year-old man has been arrested in Serunuwara for illegally possessing and selling fuel, the Police said.

Officers from the Kantale Division Criminal Investigation Unit carried out a raid in the Serunuwara area under the Serunuwara Police Division, acting on a tip-off.

During the operation, they seized 1,820 litres of diesel stored without a license and took a suspect into custody.

The arrested individual is a 41‑year‑old resident of Serunuwara. 

He was presented to the Serunuwara Police Station, which has launched further investigations. (Newswire)

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Police have arrested two individuals in separate raids for illegally storing diesel without the required permits, seizing over 465 litres in total. 

Both suspects were taken into custody on Thursday (19) following tip‑offs received by local Police Divisions.

Officers from the Katunayake Police Station raided a location in the Hinnatiyana area last night and arrested a 40‑year‑old resident of Minuwangoda. 

The suspect was found in possession of 410 litres of diesel without a legal permit. 

He was handed over to the Katunayake Police Station, which is conducting further investigations.

Meanwhile, the Police in the Mudaliyawela area of the Chilaw Division arrested a 73‑year‑old resident of Ilappadeniya. 

Acting on information received, officers seized 55 litres of diesel stored without authorization. 

The suspect was taken into custody and presented to the Chilaw Police Station. Investigations are continuing. (Newswire)

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The Indian Ministry of External Affairs said India is examining requests for diesel supply from neighbouring countries, including Sri Lanka, Bangladesh, and the Maldives.

According to the Press Trust of India, Indian Foreign Ministry Spokesperson Randhir Jaiswal said India is a major exporter of refined petroleum products, particularly to countries in its neighbourhood. 

He noted that Bangladesh has requested a diesel supply, and the matter is currently under examination.

Jaiswal added that while diesel exports to Bangladesh have largely continued since 2017, decisions will be taken after considering India’s refining capacity, domestic requirements and fuel availability. 

Similar requests from Sri Lanka and the Maldives are also being reviewed, keeping India’s energy needs in mind, he added. 

Watch : https://www.instagram.com/reels/DVx9QT0gWxB/ (Newswire/ PTI)

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Parents have been urged to remain vigilant of the activities of their young children after two tragic child deaths were reported in the last week.

In the first incident reported from Kayts, Jaffna, a toddler died after consuming diesel that was stored in an empty soft drink bottle at a house.

According to the Police, the parents of the child had rushed the toddler to the Kayts Hospital following the incident.

The child had been transferred to the Jaffna Hospital for further treatment but had passed away yesterday (23 Mar).

The deceased is a toddler aged one year and 09 months, a resident of Kayts. The Kayts Police is conducting further investigations.

Meanwhile, an 11-year-old child had died after choking on a deflated balloon in Neluwa.

The coroner’s report has ruled that the child had died due to the balloon getting stuck in his throat.

On Wednesday, the boy had been playing with the balloon, inflating and deflating it during which he had accidentally swallowed it, resulting in choking.

The child had been rushed to the Neluwa Hospital, where the doctors had managed to pull out the balloon, but the boy had passed away. (Newswire)

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The Ceylon Electricity Board (CEB) has clarified that no new decision has been taken against competitive procurement of diesel.

Issuing a statement, the CEB said that recent articles in media on competitive procurement had misinterpreted the word fuel.

The CEB pointed out that it uses three types of petroleum fuels, which are Heavy Fuel Oil, Naphtha, and Diesel, to generate electricity.

Stating that diesel was the only fuel available for purchase through competitive bidding, as there are multiple distributors, the CEB clarified that, however, it has never purchased diesel for electricity generation, through competitive bidding, including during the tenure of the former government. 

The new management has not taken any decision against competitive procurement of diesel for electricity generation, the CEB said, adding that it does not consider diesel as an economically viable electricity generation option.

Revealing that up to September 30th in 2024, only 1.1% of electricity was generated using diesel, the CEB emphasized that it will ensure competitive procedures in all its business operations. 

The clarification from the CEB comes after recent media reports on competitive procurement, which was also questioned by former Foreign Minister Ali Sabry. (Newswire)

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Opposition Leader MP Sajith Premadasa has called for an inquiry into the distribution of substandard fuel from an oil tanker that had arrived from Singapore recently.

Addressing the Parliament today (Nov 07), MP Premadasa said that ‘FOS Power’, an oil tanker with 40,000 metric tonnes of diesel is currently berthed at the Colombo Port after having arrived from Singapore on November 05.

MP Premadasa alleged that despite two laboratory reports having determined that the diesel was of inferior quality, measures are being taken to distribute the substandard fuel from Kollonawa to the public.

Stating that the quality check had been requested by the Lanka Indian Oil Company (LIOC), the MP said sample checks were conducted on November 05 and 06 after which it was proven that the stock of fuel was of substandard quality. 

The Leader of the Opposition said that the decision to distribute despite the confirmation of such inferiority is a serious matter and this can be proven with evidence.

Claiming it to be a corrupt transaction, MP Premadasa requested that the Prime Minister take the initiative to conduct an investigation and reveal the true information.

Responding to the claims, Minister of Power and Energy Kanchana Wijesekera refuted the allegations, stating that substandard fuel has not been distributed to the public. 

Addressing the Parliament, Minister Wijesekera clarified that a factually incorrect report had been published by local media. 

“The LIOC had imported a stock of 92 Octane Petrol and Auto Diesel last night. After quality checks, the 92 Octane Petrol was unloaded while the Auto Diesel stock remained unloaded and quality checks commenced over doubt,” the minister said, providing further clarifications.

Minister Wijesekera revealed that if quality checks done by the Ceylon Petroleum Storage Terminals Limited (CPSTL) find the fuel stocks to be substandard they are not unloaded but are returned, adding that as per standard procedure, only fuel stocks that pass the necessary quality checks are unloaded. (NewsWire)

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