CPC confirms $286 diesel barrel purchase, rejects overpricing claims

The Ceylon Petroleum Corporation (CPC) has confirmed that a barrel of diesel was purchased at a cost of USD 286, while firmly rejecting allegations that fuel imports were made at inflated or irregular prices.

CPC Managing Director Mayura Nethikumarage told the Daily Mirror that neither crude oil nor refined fuel had been procured at excessive rates, dismissing recent media reports as misleading.

He explained that global benchmarks typically place crude oil prices above USD 100 per barrel and refined diesel above USD 200, stressing that the CPC had never claimed imports at distorted price ranges, as suggested.

Nethikumarage further clarified that references to a “door-to-door” pricing system—reportedly linked to remarks by HSBC’s Global CEO—had been misinterpreted. He noted that such pricing applies to fuel delivered directly to consumers through mobile distribution methods, rather than bulk import costs.

Reiterating its position, the CPC said that crude oil purchases were made within a range of USD 71 to USD 113 per barrel on the international market, rejecting allegations of irregularities or excessive pricing.

Earlier, the clarification followed remarks by Georges Elhedery, CEO of HSBC, who recently highlighted that oil prices for Asian buyers can exceed benchmark rates due to additional costs such as insurance, shipping, and supply constraints.