As fuel prices have been hiked again in Sri Lanka, the price of super diesel has crossed Rs 500 to Rs 528 per litre. The increase comes under the new price revision that came into effect from midnight on September 30.
While the previous price of Super Diesel was Rs.478, there has been a one-time increase of Rs.50. Thus the new price has been fixed at Rs.528. After about three and a half years, it is reported that the price of Super Diesel has again gone above Rs.500.
Along with this price hike, there has also been a change in the prices of petrol and regular diesel. Octane 92 petrol has been sold at Rs 15 per liter to Rs 414 and auto diesel has increased by Rs 10 to Rs 392 per litre. Meanwhile, octane 95 petrol remains at Rs.475 and kerosene at Rs.285.
Continued loss on fuel sales
Commenting on the increase in fuel prices, Sri Lanka Petroleum Corporation Chairman D.J. Rajakaruna said that some fuels are still being sold at a loss compared to international market prices.
According to his information, the sale of one liter of auto diesel incurs a loss of around Rs.66. He also mentioned that petrol costs up to Rs 52 per liter and super diesel up to Rs 53 per litre.
He also said that while fuel prices have gone up in the global market, the full impact is not being passed on to consumers in the local market. International price changes and import costs in particular affect Sri Lanka’s fuel pricing.
According to another source, a calculation based on international prices has predicted the cost of Super Diesel to be around Rs 581 per liter and since it is being sold at Rs 528, the petroleum corporation will accept an amount of around Rs 53.
Thus, the current change in fuel prices cannot be viewed only from the perspective of price increase. International market conditions, import costs and local pricing patterns play a major role in this.
Impact of new price hike on people
The rise in Super Diesel price to Rs 528 will directly impact the monthly expenses of vehicle owners using the fuel. This Rs 50 increase can turn out to be a significant additional cost, especially for fuel-guzzling vehicles.
When fuel prices rise, the impact is not limited to vehicle owners. Transport costs of trucks, commercial vehicles and various service sectors are also likely to change. Due to this there is a possibility of subsequent impact on the prices of some goods and services.
At the same time, the price of auto diesel has increased to Rs.392, so the transport and commercial sectors that use diesel a lot have to face additional cost. As fuel cost is an important part of the daily operations of many industries, the price change can also be reflected in their cost accounts.
According to official fuel price data, the price of Super Diesel was Rs.520 on March 2, 2023. By now rising to Rs.528, the price has re-recorded the Rs.500-plus seen during that period.
Meanwhile, Lanka IOC has also changed some of its fuel prices in line with the Sri Lanka Petroleum Corporation’s price change. However, since Lanka IOC’s Super Diesel was already sold at Rs.600 per litre, it is reported that the price of the company’s Super Diesel has not been changed on this occasion.
Officials said that the current price hike is on the back of changes in the international fuel market. Thus future fuel price changes will also depend on the international market situation, import cost and country’s pricing system.
While the public’s attention immediately turns to vehicle costs whenever fuel prices rise, the impact may gradually play out in transport, trade and daily commodity prices as well. So, what remains to be seen is how the full impact of the new price change is reflected in the market over the next few weeks.