Imagine a small island nation, Sri Lanka, where everyday people are struggling to make ends meet. Then, picture a group of powerful corporations, both local and foreign, seemingly playing by their own rules when it comes to something as essential as fuel. This isn’t a fictional drama; it’s the reality painted by Ananda Palitha, a figure who stands up for the common person, leading the Samagi Joint Trade Union Alliance. He’s sounding the alarm, and loudly, that ordinary Sri Lankans are being squeezed by fuel price hikes, with foreign companies like Sinopec Group and Indian Oil Corporation Lanka (IOC PLC) seemingly profiting handsomely, while a US company, R.M. Parks (in league with Shell), appears to be playing a fairer game, aligning its prices with the state-owned Ceylon Petroleum Corporation (CPC), or Ceypetco as it’s often called.
Palitha’s frustration is palpable. He sees these foreign players, particularly Sinopec and Lanka IOC PLC, acting as if they are above the law. His core argument is that the government, through its inaction, has allowed this free-for-all. For years, successive governments have failed to put in place a proper Independent Commission and Regulatory Authority for the petroleum sector. This isn’t just bureaucratic red tape; it means there’s no real oversight, no one to put a check on the pricing strategies of these companies. Without a strong regulatory body, everyone – from Ceypetco itself to the foreign players – can, as he puts it, “do as they please.” This absence of a referee in such a crucial market leaves consumers vulnerable, facing prices that are dictated by corporate interests rather than genuine competition or public welfare.
What’s particularly infuriating for Palitha and, by extension, the public, is the timing of these price increases. He alleges that the government, which he refers to as the NPP, is exploiting the ongoing Middle East conflict as an excuse to rake in “unconscionable profits.” The economy is already limping, reeling from the impact of blockades in the Hormuz Strait, which naturally affects global oil supplies. Yet, instead of trying to soften the blow for its citizens, the government seems to be making it worse. He points out that all four fuel providers increased the price of Auto Diesel and Octane 92 Petrol significantly. But what’s even more galling is that at many filling stations, the cheaper Octane 92 isn’t even available, forcing people to buy the more expensive Octane 95. It’s a double whammy: higher prices for the basic, and then being pushed towards even higher-priced alternatives.
Palitha emphasizes that the government had opportunities to cushion the impact. Since the Middle East conflict flared up, fuel prices have been hiked twice in a short span. He suggests a straightforward solution: lower the taxes on crude oil and refined petroleum products. Instead, the opposite has happened. The latest revisions have actually led to even higher customs duties, VAT, and a Port and Airport Development Levy, with additional surcharges often slapped on diesel and petrol. This isn’t just about the retail price of fuel; it’s about a cascading effect on every aspect of life – transportation, goods, services – all becoming more expensive, making an already tough economic situation unbearable for many households. It paints a picture of a government that’s prioritizing revenue generation over the financial well-being of its people.
The landscape of fuel distribution in Sri Lanka has changed dramatically over the years. Ceypetco, once the dominant player, has seen its market share steadily eroded with the entry of foreign companies: Lanka IOC in 2003, Sinopec in 2023, and R.M. Parks in 2025. Ceypetco now holds about 57% of the market, with the rest divided among the private players. While more competition might sound good in theory, Palitha highlights discrepancies in pricing that suggest otherwise. He points out that Lanka IOC’s Octane 95 Petrol is significantly more expensive than Ceypetco’s. Similarly, there’s a substantial difference in Super diesel prices. Lanka IOC has also introduced even higher-priced “premium” fuel categories, further expanding the options for consumers who might feel compelled to pay more for perceived better quality, or simply because other options are limited or unavailable.
The most striking example of what Palitha sees as governmental and corporate exploitation is the price of kerosene. He questions why this by-product of crude oil refining, often used by the poorest segments of society for lighting and cooking, has been subject to such sudden and significant price increases. He alleges that the government has even raised prices on older, cheaper petroleum stocks, acquired well before the war intensified. He criticizes the political opposition for not launching a sustained campaign against this exploitation. For him, the dramatic increase in kerosene prices is “unjustifiable.” He stresses that kerosene is a by-product, meaning its production cost is inherently lower. He believes it could and should be provided to the needy at a much more affordable rate, lamenting that if politicians bothered to truly understand the issues, they would challenge this “disgraceful manipulation.” His concluding thought is a powerful accusation: that the introduction of a QR code system for fuel sales and the recent increase in fuel quotas are merely smokescreens, designed to “deceive the public” while those in power and their industry cronies secretly line their pockets at the expense of ordinary citizens. It’s a call for accountability, transparency, and a fairer deal for the people of Sri Lanka.