⛽ Sri Lanka Explores Fuel Price Revisions Amid Private Retailer Losses

• Retailer Strain & Dry Pumps: Private fuel distributors face losses up to Rs. 160 per liter on diesel due to surging global crude prices (>US$ 100/bbl), causing supply restrictions and empty pumps at several filling stations. • State vs. Private Impact: The state-owned Ceylon Petroleum Corporation (CPC) reports a lower loss of Rs. 60 per liter on diesel—offset by refinery profits and previous month's forward orders. • Policy Options Under Review: Energy Minister Anura Karunathilaka announced the government is considering options to balance consumer protection and distributor viability: • Re-introducing targeted subsidies (similar to previous subsidies of Rs. 100/L for diesel and Rs. 20/L for petrol). • Implementing price bands with upper and lower limits, allowing private retailers to set competitive prices within the range. • Macro Context & Stocks: Despite supply disruptions at private pumps, official fuel stocks remain sufficient. Rising global prices and Middle East tensions continue to strain the national cost-reflective fuel pricing model required under Sri Lanka’s IMF program.