Public Finance Data and Analysis
Free and Open Access to
FUEL PRICE TRACKER
Objective of the Dashboard
The Fuel Price Tracker is a dashboard under publicfinance.lk developed to compare global and domestic oil prices.The dashboard provides information on the proportion of public funds that are used for subsidies and the extra fee/tax collected by the Oil companies .
Fuel Price Formula – Methodology
On 11th May 2018, the pricing formula was introduced by a technical committee from the Ministry of Finance for the implementation of a cost reflective formula-based pricing system of auto fuels. Accordingly, the Maximum Retail Price (MRP) of the auto fuels was established as follows:
Table 01 – Fuel Pricing Formula
|
Description |
Source/Assumption |
|
Landed Cost (LKR/Litre) |
|
|
Weighted average premium per barrel and loss due to evaporation |
Estimated to be |
|
- USD 3.00 for petrol |
|
|
- USD 2.30 for diesel |
|
|
Singapore Price per Barrel in USD |
Singapore Platts prices released by the CBSL on subscription basis |
|
Exchange Rate (USD/LKR) |
Indicative US Dollar SPOT Exchange Rate released by CBSL |
|
No of Litres per barrel |
158.9 |
|
Processing Cost (LKR/Litre) |
Estimated to be |
|
- 6.6% of landed cost for petrol |
|
|
- 4.6% of landed cost for diesel* |
|
|
Administrative Cost (LKR/Litre) |
Estimated to be 4% of the landed cost* |
|
Taxation (LKR/Litre) |
Includes Customs Import Duty, Excise Duty, Ports and Airports Development Levy. |
|
Appropriate tax rates in the current time period were taken after considering the tax waiver. |
* This calculation is only an estimate based on the details released on the Fuel Price Formula by the Ministry of Finance to the public. The estimate was obtained by reverse engineering the aggregate details and is subject to a 3% margin of error.
