Sri Lanka Faces Impact of Rising Global Fuel Prices as CPC Reviews Market Trends

Sri Lanka is expected to experience the effects of the global rise in fuel prices, with the Ceylon Petroleum Corporation (CPC) currently assessing international market movements ahead of its next domestic price revision.

Sri Lanka is bracing for the impact of increasing global fuel prices, driven by geopolitical tensions, winter demand, and new sanctions targeting Russian oil transport. The Ceylon Petroleum Corporation (CPC) confirmed that it is closely reviewing the situation as part of its routine evaluation of refined petroleum product prices.

According to CPC assessments, fuel prices in the international market recorded a steady upward curve during the first three weeks of November. This rise is largely linked to seasonal winter demand and the tightening of sanctions imposed on Russia, a major global oil producer. An official, speaking on condition of anonymity, revealed that sanctions on 117 vessels involved in transporting Russian fuel have further intensified price pressures.

However, the global market saw a slight decline around November 22 following reports of a potential Russia–Ukraine peace deal, which temporarily eased concerns related to disrupted supply chains.

Sri Lanka imports two to three shipments of petroleum products each month. With the current volatility in global markets, the CPC is evaluating data carefully before adjusting local fuel prices. The corporation continues to follow a cost-reflective pricing formula to determine domestic rates, ensuring that local prices align with global market variations and import costs.