Diesel costs Rs. 528, sold at Rs. 392: CPC Chairman

The Ceylon Petroleum Corporation (CPC) says the latest increase in domestic fuel prices was mainly driven by a sharp rise in global petroleum prices, with the corporation continuing to absorb part of the cost of several fuel products.

CPC Chairman D.J. Rajakaruna said global fuel prices had risen significantly compared with February, which is being used as the base month for the comparison.

According to Rajakaruna, international diesel and petrol prices had increased sharply, while the price of crude oil purchased by Sri Lanka had risen from around USD 69 to approximately USD 115.

Despite the increase in international prices, he said the full additional cost had not been passed on to consumers.

Rajakaruna said a litre of diesel currently costs approximately Rs. 528 based on prevailing international prices, while it is being sold domestically at Rs. 392.

Of the resulting Rs. 136 difference, the government will bear Rs. 70 per litre under the recently announced fuel relief mechanism, while the CPC will absorb approximately Rs. 66 per litre, he said.

The government has allocated Rs. 41 billion to provide the diesel relief over the next three months.

Rajakaruna said petrol is also being sold below its current cost of Rs. 446. Following the latest revision, Octane 92 petrol is sold at Rs. 414 per litre, while the CPC continues to absorb part of the cost.

He said Super Diesel costs approximately Rs. 581 per litre but is being sold at Rs. 528, resulting in the CPC absorbing around Rs. 53 per litre.

Rajakaruna said the figures demonstrate that despite the latest price increases, the full impact of higher global petroleum prices has not been transferred to consumers. (Newswire)