Auto Diesel up Rs. 10 to Rs. 392 from 1 October 2026, with a Rs. 70 a litre subsidy

Fuel prices in Sri Lanka went up on 1 October 2026, the first increase since the cuts at the end of June. The government is also paying a diesel subsidy for October, November and December.

New prices. The Ceylon Petroleum Corporation (CPC) revision took effect from midnight on 30 September, the Daily FT and The Morning reported:

• Lanka Auto Diesel: up Rs. 10 to Rs. 392 a litre (2.6%). The Daily FT noted this is the fuel the transport and logistics sectors use most.
• Super Diesel: up Rs. 50 to Rs. 528 a litre (10.5%), the sharpest increase.
• Petrol 92: up Rs. 15 to Rs. 414 a litre.
• Petrol 95: unchanged at Rs. 475.
• Kerosene: unchanged at Rs. 285.

Auto Diesel had been Rs. 382 since 29 June, as covered in our earlier post on fuel prices.

The subsidy. The Morning reported on 4 October that the government approved a Rs. 41 billion relief package covering three months, giving Rs. 70 a litre on auto diesel and industrial diesel. The CPC chairman told reporters on 1 October that a litre of diesel costs about Rs. 528 at current world prices but sells for Rs. 392, Newswire reported. Of the Rs. 136 gap, the government covers Rs. 70 and the CPC absorbs about Rs. 66. He said the price of the crude Sri Lanka buys had risen from about US$69 to about US$115 a barrel since February, and that "the full impact of higher global petroleum prices has not been transferred to consumers".

Losses and a dispute. Energy Ministry Secretary G.M.R.D. Aponsu told The Morning that the subsidy will not remove the CPC's losses, as it will still lose on other fuels. The Morning also said private suppliers face losses because their landed costs are higher than the CPC's. Former MP Patali Champika Ranawaka disputed the CPC's cost figures. Using Singapore prices and an exchange rate of Rs. 330 to the dollar, he estimated the cost of auto diesel at about Rs. 350 a litre.

A small rise, a large hidden gap. The Rs. 10 increase is modest. But the CPC says the real cost is far higher and the subsidy is only approved for three months. When it ends after December, or if world prices rise further, the pressure for a larger diesel increase will be strong. The US Energy Information Administration forecast on 6 October that Brent crude would average US$105 a barrel in the fourth quarter of 2026, up from its earlier forecast. That is a forecast, not a certainty.

Trucking costs. Diesel is the largest running cost for lorries and prime movers. The Container Transport Owners' Association raised charges by 20% in March and 5% in June after earlier diesel increases, as described in our post on container trucking rates. We have not found any announcement of a new haulage rate change after the 1 October revision. Hauliers may still review their rates, so confirm with your transporter before booking.

Super Diesel users. Operators of newer vehicles and some generators that use Super Diesel face a 10.5% jump. Warehouses and cold stores that run backup generators should check which fuel they use.

Budgeting for Q1 2027. Because the subsidy covers only October to December, January's revision is the one to watch for any business with a large fuel bill.

1. Update your Q4 cost sheets with Auto Diesel at Rs. 392 and Super Diesel at Rs. 528.
2. Ask your haulier whether their rates are linked to diesel and, if so, what trigger applies.
3. Plan for a possible larger increase from January 2027, when the three-month subsidy period ends.
4. Check generator fuel types at warehouses and cold rooms.
5. Use the container transport tool to compare haulage options and share rate news with others in the community.