Sri Lanka’s state-owned Ceylon Petroleum Corporation (CPC) has announced a reduction in the prices of White Diesel and Octane 92, decreasing each by Rs. 2. This adjustment comes in response to declining global oil prices and the depreciation of the Sri Lankan rupee.
With this change, the price of White Diesel is now set at Rs. 277, while the price of Octane 92 has been adjusted to Rs. 292.
Globally, the oil market experienced a prolonged downturn throughout December 2025, reaching its lowest monthly averages since early 2021. This period was marked by a substantial global supply surplus that overshadowed geopolitical risks and seasonal demand fluctuations.
By late December and into early January 2026, there was a slight upward shift in the market as geopolitical tensions between the United States and Iran intensified. However, the overarching theme remained a structural surplus as the year closed.
Domestically, the Sri Lankan rupee continued its downward trajectory in December. The CPC sets local fuel prices based on a pricing formula, which was initially introduced to foster competition among market participants. Despite this, other fuel retailers, namely Lanka IOC and Sinopec, have opted to align their prices with those set by the CPC.
(Colombo/February 01/2026)
