Opposition Questions Fuel Price Increases and Demands Transparency Over Petroleum Costs

An opposition speaker has challenged the government’s decision to increase fuel prices from 1 October 2026, questioning changes in the statements made by the Ceylon Petroleum Corporation (CPC) chairman and calling for greater transparency over fuel pricing, procurement costs and alleged financial irregularities.

The speaker argued that the government should publish the fuel pricing formula and explain how the prices of diesel and petrol were calculated.

Questions over the CPC chairman’s statements

According to the speech, the CPC chairman had previously indicated that petrol sales were not creating a significant problem and that diesel-related losses could be managed because of profits from refining operations. The speaker claimed that subsequent statements described the corporation’s position as loss-making.

The speaker questioned why the government increased fuel prices after earlier assurances that the situation could be managed. They called for an explanation of the costs involved, including import prices, shipping charges, taxes and refining operations.

The exact statements and figures quoted in the speech have not been independently verified for this article.

Calls to disclose the fuel pricing formula

The speaker argued that Sri Lanka previously made its fuel pricing formula publicly accessible and criticised the government for not providing comparable transparency.

They referred to Singapore Platts market benchmarks and cited figures for diesel and petrol prices in September and October 2026. Based on those figures, the speaker questioned how the prices charged to consumers had been calculated.

The speech also argued that fuel purchased in one month may be intended for use in the following month, making the timing of the benchmark prices important when assessing a price adjustment.

The government was challenged to publish the underlying calculations, including import costs, taxes and other charges, so that the public could examine the basis for the price increases.

Allegations concerning fuel shipments

The speaker referred to a complaint reportedly submitted to the Commission to Investigate Allegations of Bribery or Corruption concerning two diesel shipments and alleged losses amounting to approximately Rs. 8 billion.

The speaker also alleged that business entities were involved in the transactions. However, the transcript does not include the complaint itself, supporting documents or an official finding confirming wrongdoing. These claims therefore remain allegations in the speech.

Coal procurement and electricity generation costs

The speech further raised concerns about coal procurement and the cost of electricity generation. The speaker claimed that higher spending on fuel oil, naphtha and diesel had increased electricity-generation costs compared with the previous year.

The speaker estimated that additional expenditure could amount to approximately US$450 million and called for the government-appointed inquiry into coal procurement to publish its findings.

These figures and allegations have not been independently verified from official financial statements or inquiry documents for this article.

Renewable energy and solar power

The speaker also criticised what they described as restrictions affecting rooftop solar energy and net-metering arrangements. They argued that expanding solar power could strengthen energy security and reduce dependence on imported fuels.

The speech called for greater support for renewable energy and questioned whether changes in policy were benefiting a limited number of businesses at the expense of smaller operators.

Demand for public disclosure

The speaker concluded by urging the government to publish the fuel pricing formula, disclose the relevant financial calculations and clarify the findings of investigations into fuel procurement and coal-related expenditure.

The central issue raised in the speech is the need for transparent information on fuel prices, public spending and energy policy.