Govt. weighs fuel pricing options as global crude prices surge

Tuesday, 15 September 2026 06:05 - - {{hitsCtrl.values.hits}}

Energy Minister

Anura Karunathilaka

Energy Minister Anura Karunathilaka yesterday said the Government is set to review fuel prices at the end of this month as a sharp rise in international crude oil prices puts pressure on the country’s domestic pricing regime.

Speaking to the media, he said fuel was currently being sold locally at prices below international market levels, while private distributors had repeatedly warned that they could not sustain operations under the prevailing pricing conditions.

“The distributing companies have flagged a loss of around Rs. 140 and 160 per litre. The Government is therefore considering several options to address the widening gap between domestic prices and global costs, while seeking to protect consumers from a sharp increase,” he added.

Karunathilaka said one option was to provide concessions, similar to Government interventions in April and May that cushioned consumers from higher international prices. Another option under consideration is a price-band mechanism, under which fuel companies would be permitted to sell within a defined minimum and maximum range.

“We will consider all of this and make a decision. The interests of fuel consumers, as well as the grievances of private companies, will be taken into account,” he said.

The Minister stressed that the Government would seek to balance fuel affordability for consumers with the financial sustainability of fuel distribution.

He said the final decision would be based on an assessment of international oil market trends as well as conditions in the domestic market, with the next fuel price calculation due at the end of the month.