Government to Provide Fuel Subsidy For Three Months

COLOMBO (News 1st) - The government has decided to provide a subsidy of Rs. 100 per litre of diesel and Rs. 20 per litre of petrol for the upcoming three months.

Chairman of the Ceylon Petroleum Corporation and the Ceylon Petroleum Storage Terminals Ltd. D.A. Rajakaruna, stated that Rs. 57 billion has been allocated to facilitate the subsidy.

Rajakaruna stated that fuel prices are expected to remain at high levels due to the ongoing war situation in the Middle East.

He pointed out that although the cost of importing and distributing one litre of diesel is around Rs. 750, it is being sold at Rs. 392, incurring a loss of approximately Rs. 358 per litre.

Meanwhile, the Chairman stated that the increase in foreign exchange spent on purchase of fuel directly affects the value of the dollar in Sri Lanka. 

In April alone, USD 522 million had been spent on fuel imports, while in May, the amount was reduced to USD 324 million.

Accordingly, Rajakaruna urged the public to limit fuel consumption as much as possible in order to protect the exchange rates values. 

He emphasized that necessary steps have already been taken to ensure an uninterrupted supply of fuel throughout the rest of the year, unless an unexpected emergency arises. 

According to the Chairman, refinery operations are continuing without interruption, and arrangements have been made to secure the required refined fuel products, including petrol and diesel, until the month of August.

However, the high fuel prices in the global market continue to pose a major challenge.

Meanwhile the Chairman of CPC further stated that there are plans to remove the current odd-even fuel distribution system in the future, however the QR code system for fuel rationing will continue to operate.

Under the fuel distribution system at present plans to provide direct subsidies for kerosene and diesel required by farmers and fishermen are underway with plans to develop the system to an online payment system.

Commenting on the electrcity consumption D.A Rajakaruna noted that an uninterrupted electricity supply has been ensured, while approximately 1,000 tonnes of diesel are consumed daily for power generation.

Rajakaruna urged the public to minimize electricity consumption during night hours as much as possible and acknowledged that relief measures will be provided during the Vesak week.