Revised Fuel Price Formula – Methodology Update

Abstract

This document explains the updated methodology adopted by PublicFinance.lk for calculating fuel prices in Sri Lanka. It outlines the changes made to the original 2018 IMF-assisted fuel price formula used by the Ministry of Finance. The update improves cost accuracy by adjusting assumptions for exchange rates, evaporation losses, processing and administrative costs, and tax components. The document also compares PublicFinance.lk’s pricing with that of the Ministry of Energy and justifies the exclusion of non-transparent or inconsistent components such as profit margins and refinery cost savings.