The Ministry of Energy has disclosed the Ceylon Petroleum Corporation’s (CPC) cost structure on its May fuel stocks, revealing per-litre losses on every major grade sold to consumers.
According to the figures, CPC is losing approximately Rs.35 per litre on Petrol 92, Rs.367 per litre on Auto Diesel, and Rs.325 per litre on Kerosene at current retail prices. The numbers were highlighted by Advocata Institute Chairman Murtaza Jafferjee in a public post analysing the disclosure.
Kerosene carries no tax component, meaning the entire Rs.325 shortfall translates directly into a balance-sheet loss for the state oil company. On Auto Diesel, the tax wedge is around Rs.163 per litre — but even after offsetting that against the pricing gap, the net loss remains close to Rs.162 per litre. Petrol 92, where excise and other levies total roughly Rs.101 per litre, is the only major fuel where the tax structure partially cushions the deficit, narrowing the headline gap.
“These figures highlight the magnitude of CPC’s financial strain,” Jafferjee said, adding that transparency on fuel costs is “vital to understanding the burden on the economy.”
The disclosure lands as CPC navigates the most expensive procurement cycle of 2026. The state oil company paid roughly US$521 million on crude and refined imports in May — its highest monthly outlay this year — driven by sustained Strait of Hormuz risk premiums. CPC last raised pump prices on May 2 but has held the line since, with reserves now stretched through September thanks to a US crude cargo and a vessel due May 31.
Opposition lawmakers, including SJB leader Sajith Premadasa, have repeatedly questioned the procurement chain and the assumptions behind retail pricing. The per-litre breakdown made public on Thursday is the first time the government has set out, in unambiguous numbers, how far below cost each major fuel is being sold.
Source: Newswire.
