Lanka IOC and Sinopec have raised the price of 95 Octane petrol by Rs. 20 a litre, with the new price taking effect from midnight on Wednesday.

The price at both companies moves from Rs. 495 to Rs. 515 a litre.

The increase widens the gap with the state-owned Ceylon Petroleum Corporation (Ceypetco). Ceypetco sells 95 Octane petrol at Rs. 490 a litre, so motorists buying the grade from Lanka IOC or Sinopec will now pay Rs. 25 more per litre than at a Ceypetco station.

It is the second rise of the same size in about a week. Lanka IOC and Sinopec had already added Rs. 20 to their 95 Octane price in late October, taking it to Rs. 495. Ceypetco also raised its price for the grade by Rs. 15 earlier this month.

Taken together, the latest changes mean the price at Lanka IOC and Sinopec has gone up by Rs. 40 a litre in a matter of days, while Ceypetco’s price has gone up by Rs. 15 over the same period, according to the figures announced by the companies.

Background

Ceypetco is the state-owned fuel importer and for decades was the only major retailer of petroleum products in Sri Lanka. Lanka IOC, the local arm of Indian Oil Corporation, has operated filling stations in the country for many years. Sinopec, a Chinese state-owned energy company, is a more recent entrant to the Sri Lankan retail market.

The two private operators set their own retail prices and announce changes separately from Ceypetco. In practice this means a litre of the same grade can cost different amounts depending on which company’s station a driver uses, and the difference can change several times within a month, as it has this month.

95 Octane is the premium petrol grade sold at filling stations. It is generally the grade used in higher-performance and newer petrol vehicles, and it is priced above the standard petrol grade.

What it means

Drivers who fill up with 95 Octane at Lanka IOC or Sinopec stations will pay Rs. 20 more for every litre from midnight on Wednesday. For a vehicle with a 40 litre tank, a full tank of this grade at the new price of Rs. 515 a litre would cost Rs. 20,600, which is Rs. 800 more than at the previous price of Rs. 495.

Motorists who want to limit the extra cost can compare prices before filling up, because Ceypetco’s listed price for the same grade is Rs. 25 lower than the new Lanka IOC and Sinopec price.

The announcement covers 95 Octane petrol only. The companies’ announcement, as reported, did not say whether prices of other fuel grades will change.