The government will continue providing the Rs. 50 per litre diesel subsidy throughout the current month while monitoring developments in the global oil market and regional conflicts before deciding on future fuel price adjustments.
Addressing the weekly Cabinet media briefing, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said the government had taken steps to protect consumers from the full impact of rising international fuel prices despite significant increases in global costs.
Responding to criticism over the comparatively small reductions in local fuel prices, he explained that international fuel premiums and shipping insurance costs had risen sharply following the escalation of geopolitical tensions in the Middle East. He noted that while many countries experienced fuel shortages, long queues and disruptions to economic activity, Sri Lanka had maintained uninterrupted fuel supplies and a continuous power supply to support the country's economic recovery.
The Minister said the government had spent Rs. 57 billion on fuel subsidies during April, May and June to cushion consumers from rising global prices.
He added that although diesel prices were reduced by Rs. 25 per litre under the latest revision, the government was continuing to absorb an additional Rs. 50 per litre through the subsidy. Petrol prices were also reduced by Rs. 20 per litre, and he assured that any further reductions in international fuel prices would be passed on to consumers.
Commenting on public concerns over the QR-code fuel quota system and the odd-even vehicle fueling arrangement, Dr. Jayatissa acknowledged reports of irregularities, including black-market activities and misuse by some fuel station operators.
He said the government was reviewing the current fuel distribution system to address operational issues, prevent abuse and improve convenience for the public while ensuring adequate fuel stocks are maintained nationwide.
