Chairman of the Ceylon Petroleum Corporation (CPC), D.J. Rajakaruna, has clarified that crude oil was never purchased at the price of USD 286 per barrel during imports to Sri Lanka, but admitted that diesel had been procured at prices exceeding USD 286 per barrel.

Speaking at a media briefing held today (17), he commented on media reports surrounding a recent statement made by the CEO of HSBC and clarified that at no time was crude oil bought at such a price. 

He explained that after the Middle East conflict began, a crude oil shipment arrived in the country on March 11, priced at USD 66.99 per barrel.

He further noted that another crude oil shipment was scheduled to arrive today (17), priced at USD 71.99 per barrel.

Accordingly, he stated that crude oil was never purchased at the reported figure, but admitted that diesel had been procured at prices exceeding USD 286 per barrel.

“I think the issue has arisen because of a statement made by the CEO of HSBC. Either it was misinterpreted and reported incorrectly by the media, or it was deliberately publicized. When we checked, HSBC had issued a media release saying fuel purchases had been made. They did not say crude oil. They said fuel. That is correct. Therefore, this kind of publicity creates unnecessary confusion in the country,” he said.

Rajakaruna explained that, due to the Middle East crisis, diesel prices rose sharply, forcing the CPC to purchase diesel at prices ranging from USD 285.28 to USD 288.06 per barrel in shipments that arrived in the country on March 31 and April 7.

“Diesel prices in the world market have risen sharply. From what we purchased, the flat average was around USD 242 per barrel. Premium values went up by 48 to 50 dollars, which increased the price further. If we had not purchased at those rates, the country would have faced a fuel shortage,” he added. 

Rajakaruna stressed that while crude oil prices remained far lower, the surge in diesel prices was unavoidable, and the CPC had to procure supplies at higher rates to ensure uninterrupted fuel availability in the country. (Newswire)

The post CPC clarifies fuel pricing issue, says diesel bought above $286 per barrel appeared first on Newswire.

Sri Lanka currently holds sufficient fuel stocks for the next two months, Cabinet spokesperson Minister Nalinda Jayatissa said.

The Minister made these reassurances following comments made by the Energy Minister, claiming that Sri Lanka does not have the means to store sufficient fuel stocks.

Responding to journalists at the weekly Cabinet media briefing, Minister Jayatissa clarified that the country does have the capacity to meet fuel demand in the short term, countering earlier remarks.

The Minister also addressed concerns that the government is now using a pricing formula introduced by the previous administration—a system this government had previously criticized.

“Fuel prices for July are determined on June 30 by calculating the average price of that month,” the Minister explained. “The price is not determined by the fuel price in May or April.”

“You are aware that there was a price increase in fuel in the month of June, especially the fuel stocks brought down in the last two weeks of June, which is what was taken into account in this pricing formula,” he added.

Jayatissa maintained that the most practical approach under current economic conditions is to continue using the fuel pricing formula. This method is intended to address fluctuations in global prices and manage the financial burden of the Ceylon Petroleum Corporation, which has accumulated debt due to past irregularities, he said.

“Through the past seven months, we have provided the public concessions in fuel pricing, whenever we could. The effects of the irregularities that occurred previously doesn’t stop the impact on the present,” Jayatissa noted. (Newswire)

The post Fuel price hike : Minister defends pricing formula appeared first on Newswire.

Bus and three-wheeler associations have announced that fares will not be reduced due to the recent fuel price revisions.

Chairman of the Lanka Private Bus Association, Gemunu Wijeratne, said the reduction of Rs. 12 for a litre of diesel was insufficient to reduce bus fares.

Gemunu Wijeratne further said the annual bus fare revision is scheduled for July this year. 

Meanwhile, the All Ceylon Three-Wheeler Owners and Drivers Association has also announced that three-wheeler fares cannot be reduced due to the recent fuel price revisions. 

Chairman of the Association Sudil Jayaruk said the reduction in petrol price was insufficient to reduce three-wheeler fares. 

The announcements come after the Ceylon Petroleum Corporation (CPC) reduced fuel prices effective from midnight yesterday (30 Apr).

Soon after, the Lanka Indian Oil Company (LIOC) and the China Petroleum & Chemical Corporation (Sinopec) announced they would match their fuel prices to that of the CPC. (Newswire)

The post Fuel price revision : No change in bus & tuk-tuk fares appeared first on Newswire.

The Western Province Threewheel Drivers & Owners Co-Operative Society Colombo says it will not reduce fares, despite the recent revision in fuel prices. 

A representative of the Association told the media that it was not practical to reduce three-wheeler charges by 50 cents or Rs. 1, due to a Rs. 10 reduction in petrol price. 

He further urged the government to regulate the three-wheeler taxi system to provide a more efficient service to the public. 

“A litre of petrol has been reduced by Rs. 10. A three-wheeler can travel for 20 kilometres using a litre of petrol. Even if we reduce fares by Rs. 10, a kilometre charge is Rs. 50. Can we reduce this by 50 cents? This is not practical,” he added. 

The decision comes as the Ceylon Petroleum Corporation (CPC) announced a reduction in fuel prices effective from midnight yesterday, with the Lanka Indian Oil Company (LIOC) and China Petroleum & Chemical Corporation (SINOPEC) also matching their prices to the CPC. (Newswire)

The post Three-wheeler unions say can’t reduce price appeared first on Newswire.

Former Minister of Power and Energy Kanchana Wijesekera has refuted recent claims by the Ceylon Petroleum Corporation (CPC) regarding fuel price revision, stating that according to the fuel price formula, the CPC can decide on the monthly pricing independent of other operators.

Taking to ‘X’, Kanchana Wijesekera said the CPC’ss fuel pricing has nothing to do with any other competitors’ or operators’ pricing, adding that the CPC is also another operator and not the regulator of the industry. 

“The pricing formula was implemented for the CPC to be cost-reflective. The CPC can decide on their monthly pricing independently of others, according to the formula. The refinery gains and losses have to be reflected in the pricing formula as long as it’s under the CPC management,” he said.

The former Power and Energy Minister revealed that the previous government did not enter into any agreement with any other operator to compensate for losses they made on their sales or pricing.

“The Government is only liable to pay any compensation from the Treasury to the operators including the CPC, if a fuel subsidy is approved by the Government and granted to the consumers,” he added. 

Kanchana Wijesekera’s comments come in response to CPC Chairman D.J. Rajakaruna’s recent claims that the CPC was unable to make independent decisions on price revisions due to the agreements signed with other companies related to the fuel supply process.

Responding to concerns on the recent fuel price revision, Rajakaruna said that the CPC was unable to change the price the way it wanted due to these agreements. 

He also pointed out that according to the current agreements, if the other companies suffer a loss, and if their expenses are higher than the current price of the formula, the government is bound to pay them the loss.

“The Energy Ministry and the Finance Ministry intervened and decided a price according to the price formula. That is how the price for this month was determined. We would have been able to shuffle the reduction of prices between various fuels if there was no involvement of other companies and we could make independent decisions. It is because of this issue that we haven’t been able to change the price the way we want,” he added, addressing the media yesterday. (Newswire)

The post “CPC not the regulator” Kanchana hits back at fuel pricing claims appeared first on Newswire.

Independent decisions on price revisions cannot be made due to the agreements entered with other companies related to the fuel supply process, Ceylon Petroleum Corporation (CPC) and Ceylon Petroleum Storage Terminal Limited (CPSTL) Chairman D.J. Rajakaruna said. 

Addressing the media on Monday (Nov 04), Rajakaruna pointed out that when prices operate without a formula, they are often determined by political advantage.

“When an election comes, the price will be reduced and later changed again. This has only resulted in the CPC falling into debt to state banks amounting to Rs. 03 billion because of having sold fuel for less than the price,” he said. 

The CPC Chairman noted that following the proper implementation of the price formula, there was a profit of Rs. 120 billion last year and so far, the CPC has a profit of Rs. 27 billion.

“As a result of the intervention of politics and the system not being implemented properly, there was an opinion in the country that the CPC could not manage the operations. Because of this, other companies were invited to Sri Lanka. Now the problem is that we are unable to act independently,” he pointed out.

Stating that at present there are other companies in the market, Rajakaruna said according to the agreements made with them, this same price formula has been used by those companies since 2022.

“The Energy Ministry and the Finance Ministry finally intervened and decided a price according to this price formula. That is how the price for this month was determined. Therefore, we were able to reduce the prices of 95 Octane Petrol and Super Diesel in comparison to the decrease in the world market price. We would have been able to shuffle the reduction of prices between various fuels if there was no involvement of other companies and we could make independent decisions,” he said. 

Rajakaruna further explained that according to the current agreements, if the other companies suffer a loss, and if their expenses are higher than the current price of the formula, the government is bound to pay them the loss.

“That is what the agreement states. Claims have been sent to the ministry in this regard. The government should pay that amount within three months. It is because of this issue that we really haven’t been able to change the price the way we want,” he added. (Newswire)

The post New CPC chairman reveals reasons why Govt can’t reduce fuel prices appeared first on Newswire.

Fuel prices were revised based on an estimation by the Ceylon Petroleum Corporation (CPC) and not per the fuel price formula, Government Spokesman Minister Vijitha Herath said.

Addressing the media today, the Cabinet Spokesman assured that fuel prices will be systematically reduced, adding that the government cannot immediately implement a Rs. 100 or Rs. 200 reduction.

He further said that if fuel prices are immediately dropped by Rs. 100 or more suddenly, it would have a drastic impact on the economy.

“We will reduce fuel prices step by step, keeping in line with the measures taken to strengthen the economy. We also expect a reduction in bus and three-wheeler fares, and other manufacturing costs. We hope to provide a concession to the public through the reduction of fuel prices,” he added. (Newswire)

The post “Fuel price reduced not based on price formula” appeared first on Newswire.

Bus fares are to remain unchanged despite the recent fuel price revision, the National Transport Commission (NTC) announced today. 

The NTC said there will be no change in bus fares even though fuel prices have been reduced.

Earlier, the All Ceylon Private Bus Owners Association also said it was not possible to reduce bus fares even though the price of diesel had been reduced. 

As per the fuel price revisions, the price of diesel was reduced by Rs. 30.

The Ceylon Petroleum Corporation (CPC) reduced fuel prices with effect from midnight on Tuesday (Apr 30).

Following the fuel price revision, the Lanka Indian Oil Company (LIOC) and China’s Sinopec Energy Lanka also revised their fuel prices. (Newswire)

The post No bus fare revision despite diesel down by Rs. 30 appeared first on Newswire.

Minister of Power and Energy Kanchana Wijesekera has provided a breakdown of the Ceylon Petroleum Corporation’s fuel cost, following the fuel price revision announced on Sunday (Mar 31). 

In a 6-point statement on ‘X’, the minister revealed the reason for not reducing the prices of 92 Octone Petrol and Auto Diesel. 

Following is the statement shared by Minister Kanchana Wijesekera;

1. Refinery cost has an impact on Auto Diesel, 92 petrol and Kerosine. Value Added Tax (VAT) is applicable for Refinery products as well from the 1st of January. Refinery gains and losses are calculated on the above products. Refinery does not produce Super Diesel or 95 Petrol. 
2. Price Formula allows for a maximum profit margin of 4% on all products. 
3. Auto Diesel and 92 Petrol full profit margins are not applied to maintain prices. If a full 4% profit margin is applied a price increase was due on Auto diesel and 92 Petrol. 
4. Profit margins are not applied for Kerosine. 
5. USD rates are calculated at the average monthly rate at which actual purchases were done during the month.
6. Another products gains or losses cannot be passed on to any other product. Cost reflective pricing formula applies individually to each product. (NewsWire)
7. 

The post Why normal petrol & diesel price not reduced? appeared first on Newswire.

1. The Ceylon Petroleum Corporation (CPC) revised fuel prices with effect from midnight yesterday (31). The revised fuel prices are as follows:

• Octane 92 Petrol : reduced by Rs.9 to Rs.356 per litre
• Octane 95 Petrol : increased by Rs.3 to Rs.423
• Auto Diesel : increased by Rs.5 to Rs.356
• Super Diesel : increased by Rs.10 to Rs.431
• Kerosene : increased by Rs.7 to Rs.249 per litre

2. The  Lanka Indian Oil Company (LOC), the local subsidiary of the Indian Oil Corporation, has also revised its fuel prices in line with the rates announced by the CPC.

3. Sinopec Energy Lanka (Pvt) Limited, the China-based oil and gas giant’s subsidiary in Sri Lanka, has also revised its fuel prices in keeping with the rates announced by the CPC.  

4. Private bus owners’ unions say there will be no increase in bus fares despite an increase in diesel prices following the fuel price revision. 

5. Three-wheeler unions say three-wheeler fares will not be reduced despite a reduction in petrol prices. (NewsWire)

The post Fuel price revision : Five key updates appeared first on Newswire.

China Petroleum & Chemical Corporation (Sinopec) is found to be selling fuel at a lesser price than the Ceylon Petroleum Corporation (CPC) and the Lanka Indian Oil Company (LIOC) following the recent fuel price revision.

Fuel prices were revised yesterday (Oct 01), with the CPC, LIOC, and Sinopec increasing their prices. 

Despite the price hike, Sinopec is found to be selling Petrol Octane 92 at Rs. 7 lesser and Auto Diesel at Rs. 3 lesser than the price of the CPC and LIOC.  

The revised fuel prices are as follows;

The post Sinopec selling Petrol and Diesel at lesser price appeared first on Newswire.

China Petroleum & Chemical Corporation (Sinopec) has announced its retail fuel prices (per litre) in Sri Lanka with effect from today (Sep. 01).

Accordingly, the fuel price of the Chinese oil major is Rs. 3 less than the prices announced by the Ceylon Petroleum Corporation (CPC) and Lanka Indian Oil Company (LIOC). 

The CPC and LIOC increased fuel prices with effect from midnight yesterday (Aug. 31).

Sinopec has announced its retail fuel prices (per litre) following the fuel price revision. 

92 Oct Petrol – Rs. 358/-.

95 Oct Petrol – Rs. 414/-.

Auto Diesel – Rs. 338/-.

Super Diesel – Rs. 356/-.

Kerosene – Rs. 231/-

Sinopec Lanka officially commenced business operations and started fuel supply at its first franchising filling station in Mattegoda yesterday. (NewsWire)

The post Sinopec announces reduced fuel prices appeared first on Newswire.

Three-wheeler fares will not be increased despite a hike in fuel prices, the All Island Three Wheeler Owners’ Association (AITWOA) announced.

President of the Association, Sudil Jayaruk said they do not intend to further burden the public with fare hikes as they are already facing hardship due to the economic crisis. 

His comments come after fuel prices were increased with effect from midnight yesterday (Aug. 31). 

Meanwhile, the National Transport Commission (NTC) says there are high chances of bus fares being increased due to a hike in diesel prices.

According to Lankadeepa, a senior official of the NTC said that if the recent price hike is more than 4% as per the pricing formula, then bus fares will have to be increased.

The senior official further said that the NTC will announce its decision on bus fare revision today. (NewsWire)

The post Fuel price hike : Update on Three-wheeler & bus fares appeared first on Newswire.

The Lanka Indian Oil Company (LIOC) has also announced that it will revise its fuel prices in line with that of the Ceylon Petroleum Corporation (CPC). 

The CPC earlier announced that fuel prices will be revised with effect from midnight today.

The revised prices are as follows:

Petrol 92 increased by Rs. 10 per litre to Rs. 328

Fuel Octane 95 reduced by Rs. 20 to Rs. 365

Super Diesel increased by Rs. 6 to Rs. 346

Auto Diesel reduced by Rs. 2 to Rs. 308

Kerosene reduced by Rs. 9 to Rs. 236. (NewsWire)

The post LIOC to revise fuel prices in line with CPC appeared first on Newswire.

Fuel prices will be reduced from Midnight today according to Minister Kanchana Wijesekara.

• Petrol reduced by Rs 60 : New Price Rs 340
• Diesel reduced by Rs 80 : New Price Rs 325
• Petrol 95 reduced by Rs 135 : New Price Rs 375
• Super Diesel reduced by Rs 45 : New Price Rs 465
• Kerosine reduced by Rs 10 : New Price Rs 295

Meanwhile, Lanka Indian Oil Company (LIOC) has also announced that it will reduce its fuel prices with effect from midnight today in line with the CPC price revision. (NewsWire)

The post Fuel prices reduced in Sri Lanka appeared first on Newswire.