CPC Chairman Explains Impact of Rising Global Fuel Prices on Sri Lanka

Ceylon Petroleum Corporation (CPC) Chairman Janaka Rajakaruna spoke at a media briefing today regarding fluctuations in global fuel prices over the past several months and their impact on Sri Lanka.

He said the media briefing was held to provide an update on the current situation regarding global fuel prices.

According to Rajakaruna:

• Global diesel prices have increased by 115%, while Sri Lanka has increased the domestic price by approximately 44%.

• Sri Lanka has not increased domestic fuel prices by the full amount of the increase recorded in global markets.

• The government provided a subsidy of Rs. 100 per litre for diesel and Rs. 20 per litre for petrol.

• Compared with February, diesel prices in the global market are currently around 92% higher, while petrol prices are around 78% higher.

• Pakistan has increased fuel prices by around 52%, while prices in the United States have increased by approximately 67.7%.

• One of the current problems is that private fuel distributors have stopped or reduced fuel distribution.

• Under the agreements with private fuel distributors, the government is responsible for covering the losses incurred under the agreed pricing arrangements.

• The current situation has deteriorated to a level beyond what was experienced when the war began.

Recent reports have also indicated that private fuel companies are facing substantial losses under current retail prices, with the government considering measures including subsidies or fuel price revisions to address the situation.