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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The luxury BMW car allocated to the Chairman of the Ceylon Petroleum Corporation (CPC) has been sold for Rs. 30 million, with the proceeds used to purchase two buses to provide transport facilities for employees at the Kolonnawa and Muthurajawela premises.

According to the Dinamina newspaper, current Chairman D.J. Rajakaruna had decided against using the vehicle, citing its high maintenance costs and heavy fuel consumption. 

Instead, the car was sold under the new administration, and the funds were redirected to improve staff welfare.

Two buses, one valued at Rs. 19 million, were handed over to employees earlier this week under the leadership of Chairman D.J. Rajakaruna. (Newswire)

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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)

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Chairman of the Ceylon Petroleum Corporation (CPC), D. J. Rajakaruna, has announced that the fuel quota currently available to the public will expire on Saturday night and will be renewed on Sunday.

“People assume that once they complete their fuel quota, it will be reopened the next day. That is incorrect. The weekly quota ends on Saturday night,” he said, speaking during a televised interview.

Rajakaruna further said the introduction of the QR code system is expected to reduce fuel consumption in the country by 20%.

He explained that the QR code system was introduced suddenly to eliminate queues at filling stations and assured that the fuel supply will remain sufficient for the coming month. (Newswire)

No end to fuel queues; QR quotas will reset every Saturday at midnight.

Authorities urge the public not to panic, saying weekly allocations will continue under the QR system. pic.twitter.com/qKl2Ux5BcR

— NewsWire (@NewsWireLK) March 17, 2026

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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)

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