Is the government's statement 'Fuel worth Rs. 720 is sold for Rs. 433' true?

There has been intense discussion recently regarding statements made by government parties that fuel is being provided to the people of this country at a significantly lower price than prevailing world market prices. Although authorities argue that a liter of fuel, which should cost around Rs. 720, is being provided at a subsidized price of Rs. 433, critics, including Rajeevkanth, a member of the National Committee of the People's Struggle Alliance, question the veracity of these statements.

Upon examining the official data published by the Ceylon Petroleum Corporation for April 2026, it is evident that the cost of landing a liter of Octane 92 petrol at the port was recorded as Rs. 274. Even after adding all other additional costs, including shipping fees, insurance expenses, storage, distribution, and administrative costs, the total cost does not exceed the Rs. 433 limit. In this context, it is a serious question on what basis the government exaggerates the true value of a liter of fuel as Rs. 720.

While state sector pricing is as such, private and foreign companies operating in the country's fuel market, such as Lanka IOC and Sinopec, also sell fuel at retail prices similar to government prices. If, as the government claims, an enormous loss of over Rs. 300 is incurred on every liter of fuel, there has been no answer yet to the practical question of how private companies, which receive no subsidies, have managed to remain in the market selling fuel at this same price for so long.

Another shortcoming is the lack of transparent information disclosed to the public regarding the global oil prices, relevant exchange rates, or the specific period used to calculate this controversial Rs. 720 value. While it is normal for world market prices to change constantly, doubts arise in society as to whether the government is attempting to show that it provides a massive fuel subsidy based on real economic data or on a false narrative built for political gain.

Due to the Sapugaskanda refinery not operating at its maximum capacity, Sri Lanka has been compelled to import refined fuel directly rather than importing crude oil for refining. In such a situation, if the actual import cost of a liter of petrol is as high as Rs. 720, it is necessary to investigate from which sources fuel is being purchased for the country, exceeding international market prices. Therefore, instead of merely presenting political slogans, authorities should transparently disclose to the country the breakdown of the total cost, including actual suppliers, international benchmarks, taxes, and transportation fees.