Fuel price increases near 50% since February as global oil shock hits Sri Lanka

Monday, 1 June 2026 00:20 - - {{hitsCtrl.values.hits}}

Sri Lanka on Saturday raised fuel prices for the fifth time since the escalation of the Middle East conflict, as the country grapples with a sharply higher fuel import bill driven by soaring global oil prices and increased import volumes.

Under the latest monthly pricing revision effective from 31 May, the State-owned Ceylon Petroleum Corporation (CPC) increased the price of Auto Diesel by Rs. 15 to Rs. 407 per litre and Petrol Octane 92 by Rs. 24 to Rs. 434 per litre.

The CPC also raised the price of Super Diesel by Rs. 20 to Rs. 478 per litre, Petrol Octane 95 by Rs. 25 to Rs. 495 per litre, and Kerosene by Rs. 20 to Rs. 285 per litre.

The latest adjustment means Auto Diesel prices have risen by 45% since the first fuel price hike linked to the Middle East crisis, which began on 28 February. During the three-month period, Petrol Octane 92 prices have increased by 48.1%, Petrol Octane 95 by 46%, Super Diesel by 45.3%, and Kerosene by 57%.

The sustained upward revisions reflect mounting pressure on Sri Lanka’s fuel import costs as the country remains heavily exposed to global energy market fluctuations and has limited storage capacity, restricting its ability to build inventories when prices are lower.

According to the Central Bank of Sri Lanka’s (CBSL) latest External Sector Performance report, expenditure on fuel imports surged by 150% year-on-year (YoY) to $ 886 million in April 2026, amid elevated global oil prices triggered by the Middle East conflict and higher import volumes. The April fuel bill alone amounted to more than half of Sri Lanka’s total petroleum import expenditure recorded during 2025, underscoring the severity of the external shock.

During the first four months of 2026, the country had already spent around 53% of last year’s total fuel import bill. The sharp rise in fuel expenditure was a key contributor to the widening merchandise trade deficit, which expanded to $ 1.38 billion in April, while imports rose 45.7% YoY to $ 2.46 billion.