Where do 92 Octane and Auto Diesel stand after the recent price reduction? (June 2024)

Abstract

On 31 May 2024, fuel prices in Sri Lanka were reduced. The price of 92-octane petrol was lowered by LKR 13, bringing it to LKR 355 per litre, while Auto diesel saw a reduction of LKR 16, lowering the price to LKR 317 per litre.

However, despite these reductions, the current market prices of petrol and diesel are still higher than the fuel price formula, as shown by the Fuel Price Tracker. As of 03 June 2024, the market prices for petrol and diesel are LKR 18.43 and LKR 19.86 higher than the formula price, respectively.

The formula prices decreased by LKR 27 for petrol and LKR 17 for diesel. However, the government only reduced the price of petrol by LKR 13 and diesel by LKR 16.

Additionally, the government also charges LKR 140 in taxes on petrol and LKR 106 on diesel. With the exception of these taxes, the cost of selling a litre of petrol is LKR 197, and LKR 192 for diesel.