Fuel price revision: Sinopec offers discount of Rs. 3 per litre while CPC makes less than a rupee profit

By Darshana Sanjeewa Balasuriya  

Sinopec Energy Lanka, which recently started its business operations in Sri Lanka, is offering a discount of Rs. 3 per litre for both petrol and diesel. On the other hand, the Ceylon Petroleum Corporation (CPC) is making a profit of less than a rupee from all petroleum products after the fuel price revision, according to Energy Minister Kanchana Wijesekera.  

The Ministry of Power and Energy has set the maximum retail price for fuel for September, effective from midnight on Thursday.  

Minister Wijesekera said that there have been significant increases in Platts prices over the past three months. “Platts prices have increased from an average of USD 80-85 per barrel in May and June to an average of USD 85 per barrel in July, and further to an average of USD 100-110 per barrel in August,” he said.  
The minister said that super diesel prices have not been significantly affected due to the last cargo purchased by the CPC in July.  

According to the breakdown of fuel costs, the price difference between the fuel price formula and the current retail price per litre is as follows: 92 Petrol - Rs. 0.42, 95 Petrol - Rs. 0.72, Lanka Auto Diesel - Rs. 0.76, Super Diesel - Rs. 0.25, and kerosene - Rs. 0.34.  

However, without government taxes and dealer margin, the cost per litre is as follows: 92 Petrol - Rs. 236.38, 95 Petrol - Rs. 256.39, Lanka Auto Diesel - Rs. 263.65, Super Diesel - Rs. 230.69, and kerosene - Rs. 218.83.  
Following the fuel price revision by the CPC, Petrol 92 Octane is being sold at Rs. 361 per litre, Petrol 95 Octane at Rs. 417 per litre, Auto Diesel at Rs. 341 per litre, Super Diesel at Rs. 359 per litre, and kerosene at Rs. 231 per litre (after a price increase of Rs. 5).  

In response to the CPC’s fuel price revision, the Lanka Indian Oil Company and Sinopec Energy Lanka - the operating entity of Sinopec Group - have also announced their fuel price revisions.  
The petroleum products of IOC are being sold at the same rates as CPC, while Sinopec is selling all petrol and diesel products at a price per litre that is less than Rs. 3 compared to CPC and IOC.  
The price per litre of kerosene remains unchanged.  
Meanwhile, Energy Minister Wijesekera stated that the government has strictly followed the fuel pricing formula and will continue to do so in future price adjustments.