More fuel price shocks shrouded in secrecy
Wednesday 16th September, 2026 Opposition propagandists are in overdrive trying to portray the JVP-NPP government as an inefficient regime or a kakistocracy. But there are certain tasks it carries out very efficiently, and they include increasing taxes, tariff, and fuel prices. Speculation is rife that another fuel price hike is in the pipeline. Filling stations, […]
Fuel price increases have become a topic of concern in Sri Lanka, with speculation suggesting another hike is imminent. Some filling stations have ceased dispensing diesel due to reported losses, while trade unions and consumer groups claim the government is attempting to pass on costs to consumers to offset losses incurred by foreign petroleum companies. The government is accused of recovering losses due to procurement issues by raising electricity tariffs and petroleum prices.
The Norochcholai power plant, a key energy source, faces challenges due to low-quality coal imports, leading to a reliance on diesel power generation. This surge in diesel demand can deplete national stocks and incur significant costs. The government must maintain sufficient fuel reserves and address coal supply shortages to ensure energy security. However, delays in coal shipments and quality issues have complicated matters for the Norochcholai power complex.
The Ceylon Petroleum Corporation (CPC) has been forced to purchase diesel at exorbitant rates of up to USD 286 per barrel, as disclosed by HSBC Group CEO Georges Elhedery. Despite this, the CPC claimed it had no choice but to pay these high prices, as not doing so would result in fuel shortages. The government's reluctance to address the transparency of fuel pricing has left the public unaware of the factors contributing to price hikes, including cost padding and recovery of losses from procurement rackets.
Written by urgent.news from The Island Sri Lanka's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
