In a revealing media address, Ceypetco Chairman Janaka Rajakaruna explained that Sri Lanka’s recent fuel price hike stems from a wartime diesel ship purchase and global crude fluctuations. As pressure mounts, the corporation defends its move, citing economic necessity and market parity with private players.
Sri Lanka’s latest fuel price hike has sparked public concern, but Ceylon Petroleum Corporation (Ceypetco) Chairman Janaka Rajakaruna says there’s more to the story than meets the eye. Speaking at a press conference in Colombo, he revealed that a diesel shipment purchased during the height of Middle Eastern conflict directly impacted the local pricing formula.
He emphasized that crude oil prices in the global market saw a modest increase this month compared to last, justifying the price revision. However, the larger cost burden, according to Rajakaruna, stems from a specific shipment acquired amid the recent Middle East war, which forced the corporation to act quickly and purchase diesel at a premium.
Rajakaruna added that Ceypetco applies a fuel pricing formula and forwards related data to the Ministry before finalizing any adjustments. “We didn’t raise prices arbitrarily,” he stated, underlining that the war and supply volatility triggered unavoidable cost escalations.
The Chairman also warned against artificially lowering fuel prices just to appease consumers. Doing so, he said, would push losses onto other oil companies operating in Sri Lanka, disrupting competitive balance and deterring future investment. “If we try to ease the burden without basis, the other companies will end up paying for it,” he said.
He noted that in the past, attempts were made to establish agreements that allow all parties to function fairly under regulated market dynamics. Ultimately, he reaffirmed that fuel pricing in Sri Lanka hinges on global market trends, supply-chain disruptions, and economic sustainability rather than short-term political gain.
