Petrol and Diesel Market Price vs. Formula Price in January

Abstract

On 01 January 2025, the market prices of 92-octane petrol and auto diesel remained unchanged. However, the Public Finance Fuel Price Tracker indicates that both fuel types continue to be priced above their respective formula prices. The current market price of 92-octane petrol is LKR 309.00 per litre, which is LKR 10.15 higher than the formula price, while auto diesel is priced at LKR 286.00 per litre, exceeding the formula price by LKR 15.99. This indicates that despite lower supply costs, the CPC continues to charge a higher price.

A significant portion of fuel prices is driven by government-imposed taxes, including CID, Excise Duty, SSCL, and VAT. As of January 2025, these taxes amount to LKR 119.47 per litre for 92-octane petrol and LKR 93.27 per litre for auto diesel. Excluding these taxes, the underlying cost of selling 92-octane petrol is LKR 179.38 per litre, while auto diesel costs LKR 176.74 per litre. This means that taxes account for nearly 40% of the formula price for 92-octane petrol and approximately 35% of auto diesel.

It is also important to note that, from January 2025 onwards, the Public Finance Fuel Price Tracker has implemented changes to its fuel formula price calculation methodology.