Introduction

Kerosene Price in Sri Lanka Industrial 2025 is a timely topic due to the critical role kerosene plays in the country's energy and industrial sectors. As Sri Lanka works toward economic recovery, fuel price fluctuations—particularly kerosene—have emerged as a key concern for households, industries, and policymakers. While kerosene has long served as an essential energy source for cooking and lighting in low-income homes, it also plays a critical role in industrial sectors such as paint manufacturing, chemicals, and textiles. In 2025, tracking kerosene pricing trends offers valuable insights into the nation’s economic health, energy strategies, and import-related expenses.

This article explores the current kerosene price in Sri Lanka, its specific pricing for industrial use, the projected cost in 2025, and how these changes impact the economy.

Kerosene Price in Sri Lanka

Kerosene price in Sri Lanka has traditionally been a topic of economic concern and public interest. As a petroleum product derived through fractional distillation, kerosene is highly sensitive to international crude oil prices, exchange rates, and government subsidies. In 2024, Sri Lanka experienced several price changes due to global oil market instability and domestic economic reforms.

In Sri Lanka, kerosene price regulation falls under the authority of the Consumer Affairs Authority (CAA) and the Ceylon Petroleum Corporation (CPC). By the end of 2024, the average retail rate was around LKR 365 per liter. Monthly variations are common due to changes in international crude oil prices and domestic tax frameworks. Since kerosene is an essential fuel for low-income households, its cost remains a contentious topic, leading to growing demands for government intervention through subsidies or fixed pricing.

Additionally, factors such as currency depreciation and inflation have made kerosene less affordable for average consumers. Government measures, such as energy relief packages and financial assistance programs, have been implemented sporadically to control public unrest and maintain energy accessibility.

Industrial Kerosene Price in Sri Lanka

Industrial kerosene price in Sri Lanka differs significantly from domestic pricing, primarily due to volume-based purchasing, usage permissions, and taxation. Industries that rely on kerosene include sectors such as glass manufacturing, synthetic fiber production, metal treatment, and printing. These industries require kerosene for heating, cleaning, and processing purposes.

While domestic users may purchase kerosene from filling stations, industrial users typically engage in bulk procurement directly from the Ceylon Petroleum Storage Terminals Limited (CPSTL) or approved third-party distributors. As of early 2025, the industrial kerosene price ranged between LKR 390 and LKR 420 per liter depending on order size, transportation costs, and geographical location.

Additionally, industries are not typically eligible for subsidized rates, and must account for value-added tax (VAT) and fuel surcharges. This price difference adds to operational expenses and, in turn, may be passed on to consumers through higher product pricing. Several trade organizations have lobbied for industrial fuel concessions, citing the rising cost of production and its potential impact on export competitiveness.

Kerosene Price in Sri Lanka 2025

Kerosene price in Sri Lanka 2025 is projected to remain volatile, influenced by international energy trends, economic recovery efforts, and local policy decisions. According to forecasts from energy analysts and government publications, the average price of kerosene may rise to LKR 410–LKR 430 per liter by the end of 2025.

Multiple factors contribute to this anticipated increase:

1. Global Oil Demand – As global demand rises post-pandemic, crude oil prices are expected to climb, impacting all downstream petroleum products.
2. Currency Fluctuation – Continued pressure on the Sri Lankan rupee could increase import costs for petroleum.
3. Taxation Reforms – The government’s effort to raise revenue may involve increasing taxes on fossil fuels, including kerosene.
4. Climate Policies – Environmental commitments may lead to reduced subsidies on fossil fuels, pushing prices upward in favor of renewable alternatives.

On the other hand, Sri Lanka’s energy policy may also explore diversification strategies such as importing from regional neighbors, negotiating fuel swap deals, or enhancing local refinery efficiency. These efforts could stabilize or slightly lower the expected price rise. Regardless, businesses and consumers alike are advised to prepare for costlier kerosene in 2025, especially in the industrial domain.

Conclusion

In conclusion, understanding the Kerosene Price in Sri Lanka Industrial 2025 involves looking at historical pricing, industrial demand, and future projections shaped by global and local dynamics. The general kerosene price in Sri Lanka has witnessed frequent adjustments influenced by international markets and internal economic challenges. For industrial users, the pricing structure is more complex, involving taxes, logistics, and policy considerations.

Looking ahead to 2025, both consumers and industries should anticipate moderate to significant increases in kerosene prices. Strategic energy management, potential government subsidies, and alternative fuel exploration will play a critical role in mitigating the impact. As the country navigates its post-crisis recovery, monitoring kerosene price trends remains essential for budget planning, policy formulation, and economic resilience.

This article offers valuable insight for energy analysts, industrial planners, and everyday Sri Lankans who rely on kerosene for daily or operational needs. Stay informed and prepared as the nation moves forward with energy transitions and economic reforms.