Lanka Indian Oil Company Urges Sri Lanka Fuel Price Hike
Lanka Indian Oil Company Managing Director K. Raghu called for retail fuel price revisions to stop losses caused by prices falling below international benchmarks.
Managing Director of the Lanka Indian Oil Company K. Raghu called for a revision of retail fuel prices in Sri Lanka, reporting that current domestic rates have fallen below minimum international market benchmarks. Raghu stated that the company is incurring a loss of approximately Rs.140 per litre on diesel as of September 26.
According to Raghu, the domestic retail price for diesel is equivalent to roughly US$125 per barrel, while the international market price ranges between US$172 and US$173 per barrel. He advocated for the implementation of a cost-plus pricing mechanism to ensure the company can recover its procurement and distribution costs.
Energy analysts and economists warned that selling fuel below viable international benchmarks threatens the financial health of the Ceylon Petroleum Corporation and other state-linked entities. While low prices offer short-term relief to consumers, experts cautioned that the misalignment could strain state finances and undermine economic stabilization efforts under the International Monetary Fund recovery programme.
