ECONOMYNEXT – Sri Lanka’s current fuel price formula allows for a maximum profit margin of 4 percent on all products, Power and Energy Minister Kanchana Wijesekera has said.
“If a full 4 percent profit margin is applied, a price increase was due on auto diesel and 92 petrol,” Wijesekera said on his social media page on X (twitter).
Fuel prices are revised on the first of each month. Wijesekera provided a CPC fuel cost break down after the price revision last night:
“1.Refinery cost has an impact on auto diesel, 92 petrol and kerosene. VAT is applicable for refinery products as well from the 1st of January. Refinery gains and losses are calculated on the above products. Refinery does not produce Super Diesel or 95 Petrol.
2. Formula allows for a maximum profit margin of 4% on all products.
3. Auto Diesel and 92 Petrol full profit margins are not applied to maintain prices. If a full 4% profit margin is applied a price increase was due on Auto diesel and 92 Petrol.
4. Profit margins are not applied for kerosene.
5. USD rates are calculated at the average monthly rate at which actual purchases were done during the month.
6. Another products gains or losses cannot be passed on to any other product. Cost reflective pricing formula applies individually to each product.”