Is the govt.‘s claim that “fuel worth Rs. 720 is being sold for Rs. 433” actually true?

By Rajeevkanth- People’s struggle alliance National committee member

Colombo, June 11 (Daily Mirror) - Some government representatives have claimed that fuel is being provided to the public in Sri Lanka at a significantly reduced price compared to global market rates, arguing that fuel which should be sold at around Rs. 720 per litre is instead being sold for approximately Rs. 433 per litre.

However, this claim raises several important questions.

First, according to pricing data released by the CPC for April 2026, the landed cost of Petrol 92 was approximately Rs. 274 per litre. Even after adding shipping, insurance, storage, distribution, administrative expenses, and other associated costs, the total calculated cost comes to roughly Rs. 433 per litre.

If that is the case, how can it be claimed that the actual value or cost of this fuel is Rs. 720 per litre?

Second, not only CPC but also private and foreign-owned fuel suppliers such as IOC and Sinopec are selling fuel at almost the same retail price. If the government were genuinely absorbing a loss of more than Rs. 300 per litre, it would be difficult to explain why private companies would continue selling fuel at the same price without incurring similar losses.

Third, what exactly is the basis for the figure of Rs. 720? Which global oil price was used? What exchange rate was applied? Which specific time period does this calculation refer to? To date, no transparent explanation has been provided to the public regarding how this figure was derived.

While it is true that global oil prices fluctuate and fuel pricing involves multiple components, the question remains whether presenting fuel as being sold at a massive subsidy accurately reflects the economic reality or is simply a political narrative.

The public is asking only one thing:

Show us the full calculation and explain clearly how the figure of Rs. 720 was arrived at.

Until such evidence is made public, the claim that “fuel worth Rs. 720 is being sold for Rs. 433” will continue to be viewed by many as a political claim rather than a proven economic fact.

Furthermore, the Sapugaskanda Refinery is not operating at its full capacity, meaning Sri Lanka is largely dependent on importing refined petroleum products rather than crude oil for refining locally. Therefore, if the government claims that the actual import cost of a litre of petrol is Rs. 720, a legitimate question arises: Where exactly is this fuel being purchased at such a price? This figure does not appear to reflect prevailing international market rates. Either the public is being presented with an inflated cost calculation, or critical details of the pricing methodology are being withheld.

We are not interested in political narratives or propaganda. We simply want transparency. If the true import cost is indeed Rs. 720 per litre, the government should publish the complete breakdown, including the supplier, international benchmark price, exchange rate used, freight, insurance, taxes, and all other associated costs. The public deserves facts, not slogans.