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Sri Lanka Urges Fuel Reduction Amid Price Hikes and West Asia Conflict
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News18•01-10-2026, 19:30
Sri Lanka Urges Fuel Reduction Amid Price Hikes and West Asia Conflict
- •Sri Lanka's state-owned Ceylon Petroleum Corporation (CPC) urged consumers to reduce fuel consumption following recent price increases.
- •Petrol and diesel prices rose again due to escalating international market costs, influenced by the West Asia conflict.
- •CPC Chairman DJ Rajakaruna highlighted significant losses on each litre of diesel and petrol sold, even with government subsidies.
- •The appeal comes after the cabinet approved a fuel subsidy aimed at cushioning the public from rising costs.
- •Fuel import expenditure in Sri Lanka surged by 68% year-on-year in July, according to Central Bank data.
Key Questions Answered
The Ceylon Petroleum Corporation increased diesel and petrol prices due to cost escalations in international markets driven by the ongoing conflict in West Asia.
A litre of diesel costs the CPC LKR 528 and is sold at LKR 392, resulting in a loss of LKR 136. Even with a government subsidy of LKR 70, the CPC still incurs a loss of LKR 66 per litre.
The conflict has disrupted global energy markets and pushed up international oil prices, causing Sri Lanka's fuel-import expenditure to rise by 68 per cent year-on-year in July.
