Sri Lanka fuel prices have risen from January 5, 2026, as the Ceylon Petroleum Corporation adjusts diesel, premium fuels, and other petroleum products amid market and operational considerations. Consumers now face increased costs for several key fuels.
Sri Lanka fuel price hike takes effect from January 5, impacting diesel and premium fuels
Sri Lanka fuel prices have increased for several categories of petroleum products as of January 5, 2026, according to a notification by the state-run Ceylon Petroleum Corporation (CPC). The adjustment affects all fuels except Petrol Octane 92, reflecting rising operational costs, supply chain pressures, and global energy price fluctuations.
Petrol Octane 92 will remain unchanged at 292 rupees per litre, providing some relief for everyday drivers. However, other fuels have seen notable increases: Petrol Octane 95 has risen to 340 rupees per litre from 335, Auto Diesel is now 279 rupees, up from 277, and Super Diesel has increased to 323 rupees from 318 rupees per litre.
Kerosene prices have also been revised upward to 182 rupees per litre, from 180, while Lanka Industrial Kerosene stands at 193 rupees. In addition, Lanka Fuel Oil Super and both high sulfur and low sulfur fuel oils are now priced at 194 rupees per litre.
The CPC stated that the adjustments are necessary to maintain operational sustainability and align domestic fuel prices with international market trends. Rising crude oil prices globally and the increased cost of refining and distribution have contributed to these changes.
Market analysts note that these increases, while moderate, will have a cascading effect on transportation, logistics, and consumer goods prices. Diesel and premium fuels are widely used in commercial vehicles, construction machinery, and industrial operations, meaning businesses may face higher operational costs. Retailers may eventually pass some of these increases on to consumers, potentially affecting household budgets.
Sri Lanka’s fuel pricing policy has historically aimed to balance economic considerations, government subsidies, and the financial viability of CPC. In previous years, the corporation occasionally absorbed global price increases to avoid sudden spikes for consumers, but sustained cost pressures have necessitated a more direct adjustment this time.
Petrol Octane 95, Auto Diesel, and Super Diesel are particularly critical for commercial and industrial sectors. Experts suggest that companies relying on heavy diesel consumption may need to review logistics strategies, optimize fuel efficiency, and consider partial adoption of alternative energy sources to mitigate rising expenses.
CPC also emphasized that its fuel pricing revisions are guided by transparency and regulatory compliance. Regular monitoring of global oil markets, currency fluctuations, and domestic demand forms the basis for pricing decisions. The corporation continues to provide updates to ensure that consumers and businesses are aware of changes in a timely manner.
Despite the price adjustments, Petrol Octane 92 remaining stable offers some respite to private motorists, who constitute the majority of daily fuel consumers. Analysts suggest that the decision to exempt this key category from an increase may help soften the immediate economic impact on households while still addressing the broader fiscal pressures affecting CPC operations.
Looking forward, further revisions in fuel pricing could occur if global crude oil prices fluctuate significantly or if operational costs rise unexpectedly. Both consumers and commercial operators are advised to plan fuel budgets accordingly, keeping in mind the potential for moderate price adjustments throughout the year.
Sri Lanka fuel price changes are a recurring feature of the domestic energy landscape, reflecting the dynamic interplay between international market trends, national energy policy, and operational costs for state-owned petroleum enterprises. With this latest adjustment, CPC continues to navigate the challenge of providing reliable fuel supplies while maintaining financial stability.