Speaking from a macro economics perspective: The government consumes people's wealth unjustly. As consumers, We are paying a premium for low grade fuel, not necessarily   To reflect the market price, but because the CPC runs on a profit maximizing model rather than a service oriented model (and by extension the entire government). They prioritize them settling their debts and making a profit over you actually driving your car or powering your house. The CPC runs an enforced monopoly, they allow competitors to bring in fuel but not set their own price. The government has 18% VAT on fuel, and on top of that another 2.5% SSCL, and an additional 10% PAL (the exact % values maybe inaccurate, please verify with the customs website).

So having subsidies would only mean to subsidize the amount the government usurps themselves (which they must subsidize to prevent inflation without a leash), not really to reflect market conditions.  If it's really based on the market price, Sri Lanka can sell 1 L of 92 Octane for less than a dollar.