The Ceylon Petroleum Corporation (CPC) is currently losing 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, explaining the reasons behind the latest fuel price increase.
According to Rajakaruna, the cost of supplying a litre of auto diesel is around Rs. 536, while it is sold at Rs. 407. A litre of Octane 92 petrol costs approximately Rs. 494 to supply but is sold at Rs. 434.
The figures highlight the gap between global fuel costs and domestic retail prices, which the Government has been absorbing in recent months through fuel subsidies. Rajakaruna said Rs. 57 billion had been allocated to support fuel pricing, but the funds earmarked for this purpose are expected to be exhausted by the end of June.
The latest price revision comes amid rising global oil prices and an increase in the country’s fuel import bill. According to the CPC Chairman, maintaining fuel prices significantly below supply costs would require continued government funding and place additional pressure on public finances.
Fuel imports remain one of the country’s largest foreign exchange expenses. As global oil prices increase, the cost of maintaining subsidised fuel prices also rises, creating pressure on foreign currency reserves and the broader economy.
Rajakaruna said continued consumption growth under subsidised pricing could further increase import demand and affect the stability of the rupee. He urged consumers to use fuel efficiently where possible to help manage demand.
The CPC Chairman also said the corporation would strengthen monitoring of fuel distribution through the QR code system and take action against fuel station operators who fail to comply with required procedures.
The latest fuel price adjustment reflects the challenge of balancing consumer affordability with the financial cost of maintaining fuel subsidies during periods of elevated global energy prices.
Last modified: June 2, 2026
