Lanka IOC has reportedly requested a revision of retail fuel prices, stating that current prices have fallen below even the lowest international market rates.
Lanka IOC Managing Director K. Raghu said that although the company sources fuel from Singapore and India at competitive prices, the current retail rates are insufficient to cover its costs.
According to data up to September 26, the company is incurring a loss of approximately Rs. 140 per litre on diesel at current retail prices, he said.
Raghu said the company’s fuel procurement cost is around Rs. 136 per litre, adding that Lanka IOC has recorded the lowest procurement costs among the three foreign companies operating in Sri Lanka’s fuel market, including RM Parks and Sinopec.
He also noted that Sri Lanka’s current retail fuel prices are below the Singapore Mean of Platts (MOPS) prices, which serve as a regional benchmark for petroleum products.
According to Raghu, the international market price of a barrel of diesel is currently around US$172–173, while Sri Lanka’s retail price is equivalent to a global market price of approximately US$125 per barrel.
“No one can obtain fuel at a better price than this,” he said, noting that any importer would at least have to pay the Singapore market price in addition to transportation costs.
Raghu further said that the entry of the three foreign fuel companies had enabled them to capture around 35% of Sri Lanka’s fuel market, significantly reducing the financial burden on the Treasury.
