News

Pricing formula sends fuel prices through the roof

Published

4 years ago

2022/05/25

By Rathindra Kuruwita

The Cabinet had introduced a fuel pricing formula, Minister of Power and Energy, Kanchana Wijesekera said, addressing the post-Cabinet Press Conference.

Wijesekera said the need for a fuel pricing formula had arisen due to the current crisis.

“When the previous government introduced a fuel formula, we were in the opposition, and we were critical of it. However, a pricing formula is a must,” he said.

With the implementation of the fuel pricing formula, the price of fuel would be changed once in two weeks or once a month, depending on the requirements, the Minister said.

Minister Wijesekera said that Sri Lanka needed about USD 530 million to import fuel for the month of June.

“However, in recent times we have only collected about Rs. 75 billion Sri Lankan rupees a month. There is a gap of 125 billion rupees. To bridge the gap, we must go to the Central Bank or to the Finance Ministry. They will have to print money to help us. So, they have asked us to cover our costs,” the minister said.

He said that the cost of importing and distributing a litre of 92 octane petrol was Rs. 421.71 and that at the previous price of Rs. 338, the Ceylon Petroleum Corporation (CPC) was making a loss of Rs. 83.71 on each litre.

“We increased prices by Rs. 82. Even with this we incur a loss of over a rupee,” the Minister said.

They had been selling a litre of 95 octane petrol at Rs. 373 when the cost of importing and distributing a litre was Rs. 444. “We have increased the price to Rs. 450 now,” he said.

The Minister said the cost of importing and distributing a litre of auto diesel was Rs. 400.60 and the price had been increased to Rs 400. The cost of a litre of super diesel was Rs. 444.94. With the increase of Rs. 116 a litre, the new price was Rs. 450.

“However, we still sell kerosene at Rs. 87 a litre. The cost is Rs. 362.26, which means we make a loss of Rs. 275.26 per kerosene litre sold. We also asked for a hike in kerosene, but the President, the Prime Minister and some other Ministers said that kerosene was used by several vulnerable groups and that we must not increase prices now,” he said.

However, there was a lot of misuse involving kerosene, especially in the transport sector, the Minister said. A significant number of buses were now run on kerosene although they increased bus fares when diesel prices went up.

“We have asked the Transport Minister to check the emission certificate of these buses and identify whether they have been using kerosene. People ask us how the Lanka Indian Oil Corporation (LIOC) makes profits when the CPC makes losses. It is mainly because we sell kerosene, the IOC doesn’t sell kerosene. We also help government institutions like the Ceylon Electricity Board (CEB), railways, Sri Lanka Transport Board (SLTB) and SriLankan Airlines. And there are many delays in payments. For example SriLankan Airlines alone owes us over 300 million US dollars,” he said.

The Minister said that they had spoken to private bus and bowser associations and asked them to increase fares, based on pricing formulas. Gas stations too had been informed that their credit limit had been increased, he said.

“We have also asked gas stations to increase the limit of fuel allocated for vehicles. Now, gas stations can pump fuel worth Rs. 2,500 to motorcycles, Rs. 3,000 to three-wheelers and Rs. 10,000 to other light vehicles. We will have to enforce these limits for a few more days. We also urge people not to hoard fuel because this will prolong the crisis,” he said.

The Minister added that the police have been raiding places that have been hoarding fuel and selling at higher rates. All gas stations now have security force personnel in civvies and in uniform to ensure the safety of the institution and employees, he added.

“We are also monitoring people who are joining queues, filling up and then taking the fuel out to sell at the black-market. This is especially happening at the IOC gas station in Narahenpita. We are monitoring this situation and soon severe action will be taken against such people,” he said.

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Flood warning issued to the Divisional Secretariat Divisions of Ganga Ihala Korale, Udapalatha, Doluwa, Udunuwara, Yatinuwara, Gangawata Korale, Harispattuwa, and Pathadumbara

Published

7 hours ago

2026/09/20

Priyan

Due to heavy rainfall received in the upper catchment areas of the Mahaweli River over the past few hours, there is a risk of minor flooding in the low-lying areas surrounding the Mahaweli River within the Divisional Secretariat Divisions of Ganga Ihala Korale, Udapalatha, Doluwa, Udunuwara, Yatinuwara, Gangawata Korale, Harispattuwa, and Pathadumbara.Residents living in the above mentioned areas and motorists using roads passing through these areas are urged to exercise extreme caution and remain highly vigilant regarding the prevailing situation.

Furthermore, residents living in close proximity to the Mahaweli River in these areas are advised to remain highly alert to the situation and take all necessary precautions to protect themselves from any potential flooding.The relevant disaster management authorities are requested to take all necessary measures in response to this situation.

Latest News

Landslide Red Alerts issued to the districts of Kandy, Kegalle and Nuwara Eliya

Published

7 hours ago

2026/09/20

Priyan

The National Building Research Organisation [NBRO] has issued landslide Red Alerts to the districts of Kandy, Kegalle and Nuwara Eliya effective from 14:00 hrs on 20.09.2026 To 14:00 hrs on 21.09.2026

Accordingly,
LEVEL III [RED] Land Slide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Pasbage Korale in the Kandy district, Dehiowita, Aranayake, Deraniyagala, Mawanella and Yatiyanthota in the Kegalle district and Kothmale West, Kotmale East, Ambagamuwa and Norwood in the Nuwara Eliya district

LEVEL II [AMBER] Land Slide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Padukka in the Colombo district, Nagoda, Thawalama and Neluwa in the Galle district, Bulathsinhala, Palindanuwara, Walallawita and Agalawatta in the Kalutara district, Ganga Ihala Korale in the Kandy district, Bulathkohupitiya and Kegalle in the Kegalle district, Akuressa and Pitabeddara in the Matara district, Thalawakele in the Nuwara Eliya district and Pelmadulla, Ratnapura, Ayagama, Kuruwita and Ratnapura in the Ratnapura district.

LEVEL I [YELLOW] Land Slide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Seethawaka in the Colombo district, Niyagama and Baddegama in the Galle district, Mirigama in the Gampaha district, Ingiriya in the Kalutara district, Udapalatha and Yatinuwara in the Kandy district, Galigamuwa, Warakapola and Ruwanwella in the Kegalle district, Kotapola, Pasgoda and Athuraliya in the Matara district, and Eheliyagoda, Kalawana and Elapatha in the Ratnapura district.

News

Development projects can deliver results to the people more quickly when the political authority and the public service work together towards a common goal – PM

Published

9 hours ago

2026/09/20

Priyan

Prime Minister Dr. Harini Amarasuriya stated that development projects can deliver results to the people more quickly when the political authority and the public service work together towards a common, people-oriented objective.

The Prime Minister made these remarks while participating in a discussion held on Friday [September 18] at the Western Province Council Auditorium to review the progress of the development project to rehabilitate Rathmalana Kandawala Road and the drainage system on either side of the road, within the Dehiwala–Mount Lavinia Municipal Council limits in the Colombo District.

The project, which commenced on September 10, 2026, is scheduled to be completed before June 30, 2027. Implemented by the Provincial Road Development Authority (PRDA), the project includes the construction of a bridge at a cost of Rs. 64 million, the rehabilitation of the drainage system at a cost of Rs. 930 million, and the rehabilitation of the road at a cost of Rs. 115 million.

The Prime Minister also paid special attention to the progress of the responsibilities assigned to the Western Province Council, the Irrigation Department and the Ratmalana Divisional Secretariat in accordance with decisions taken at the previous committee meeting. Attention was also given to the current status of the plans being carried out by the Sri Lanka Land Development Corporation (SLLRDC), as well as the construction and maintenance activities being undertaken by the Provincial Road Development Authority (PRDA).

Commending the expedite and commendable progress of the project, the Prime Minister particularly appreciated the commitment demonstrated by officials of the relevant government institutions to work in close coordination with one another and in collaboration with the political authority.

The Prime Minister also emphasised the importance of taking measures well in advance to control flooding and minimise its impact on Colombo and several other districts in view of the rainy weather that may affect the Western Province during the latter part of this year.

The meeting was attended by the Chairman of the Colombo District Coordinating Committee and Member of Parliament Lakshman Nipuna Arachchi, Chairperson of the Ratmalana Divisional Coordinating Committee and Member of Parliament Samanmalee Gunasinghe, Chairman of the Roads Sub-Committee of the Colombo District Coordinating Committee Dewananda Suraweera, Mayor of the Dehiwala–Mount Lavinia Municipal Council Parakum Shantha, Chief Secretary of the Western Province K.G. Pradeep Pushpakumara, along with a number of government officials.

[Prime Minister’s Media Division]