A shocking fuel pricing revelation raises urgent questions over transparency, accountability, and who truly benefits from Sri Lanka’s diesel imports.
Iran’s controversial proposal to charge just $2 per barrel as a reconstruction levy once triggered global outrage. Now, a far more troubling allegation has surfaced in Sri Lanka, where an additional $10 per barrel of diesel may have been quietly absorbed into procurement costs, raising serious concerns over fuel pricing, governance, and financial accountability.
Former Provincial Councilor Waruna Rajapaksa has alleged that the Ceylon Petroleum Corporation, widely known as Cypetco, paid significantly above the prevailing global market rate when importing diesel, resulting in a loss estimated at nearly Rs. 250 million from a single shipment. Speaking at a recent media briefing, he questioned how such a premium could be justified at a time when global fuel markets remain highly scrutinized.
Drawing a comparison to international reactions, Rajapaksa pointed out that Iran’s attempt to impose a modest $2 levy per barrel on crude oil passing through the Strait of Hormuz was met with widespread resistance and diplomatic pressure. In contrast, Sri Lanka’s apparent willingness to pay an unexplained $10 premium per barrel has not triggered similar scrutiny, raising questions about oversight and decision making within the country’s energy sector.
According to details presented, the price of refined diesel stood at approximately $230 per barrel on April 2, based on the Singapore Tapis price index, a key benchmark in global oil pricing. When factoring in the highest possible logistics costs of $35 and insurance expenses of $11.5, the total expected landed cost per barrel would amount to $276.5.
However, Rajapaksa claims that Cypetco purchased diesel at $286 per barrel, exceeding the calculated fair price by a notable margin. This discrepancy, he argues, cannot be dismissed as routine fluctuation and instead points toward a deeper issue within procurement processes.
He questioned whose interests were being served by agreeing to such elevated pricing, especially when global examples show that even minimal additional charges can trigger intense political and economic debate. The lack of a clear explanation from relevant authorities has only intensified suspicion.
Rajapaksa further stated that the financial impact of this pricing gap becomes significant when scaled to the volume of a full shipment, with losses estimated to reach approximately Rs. 250 million per vessel. He also criticized the responses provided by the Managing Director of the CPC, describing them as insufficient and lacking transparency.
He emphasized that he would continue to challenge what he described as unjustified pricing practices, particularly at a time when the burden on the public remains severe. With diesel prices exceeding Rs. 570 per liter even before taxation, concerns over cost efficiency and fair procurement have become increasingly urgent.
The issue now extends beyond a single transaction, touching on broader themes of accountability, transparency, and the integrity of Sri Lanka’s fuel import system. As public scrutiny grows, the demand for clear answers and corrective action is likely to intensify in the days ahead.
