Lanka IOC and Sinopec have raised the retail price of a litre of Octane 95 petrol by Rs. 20, from Rs. 475 to Rs. 495, according to EconomyNext.
The revised price was due to take effect from midnight on 25 October. The prices of Octane 92 petrol, Auto Diesel and Super Diesel have not changed for now.
State-owned Ceylon Petroleum Corporation is still selling Octane 95 petrol at Rs. 475 a litre, so the two private operators now charge Rs. 20 more than the state company for the same grade.
Fuel queues were seen at some petrol sheds, and consumers told reporters that petrol was not available at some of them.
Energy Minister Anura Karunatilaka told Parliament earlier this month that private fuel operators had been limiting the fuel they release to the domestic market because they were making losses under the government’s regulated pricing structure.
“All those companies are stating that they cannot sell at the prevailing market price in Sri Lanka. However, we do not have the ability to increase prices proportionately to that. In light of this, they have restricted the fuel released to the market,” Karunatilaka told Parliament.
Background
Lanka IOC and Sinopec are the private companies that sell fuel through their own retail networks alongside the state-owned Ceylon Petroleum Corporation. Motorists can choose between the state company’s sheds and the private operators’ sheds.
The minister’s remarks to Parliament, made earlier this month, said the operators were saying the regulated price does not cover their costs. The increase announced on 25 October applies only to Octane 95 and only to the two private operators.
What it means
Motorists who buy Octane 95 from Lanka IOC or Sinopec pay Rs. 20 more for each litre. For a driver filling 40 litres, that is Rs. 800 more per tank than at the previous price.
Drivers who use Octane 92 petrol or diesel are not affected by the change for now, and Ceylon Petroleum Corporation customers continue to pay Rs. 475 for Octane 95. Anyone planning a long journey may wish to check availability at their usual shed first, given the reports of shortages at some outlets.
