Speaking at a media briefing held at the Department of Government Information today (26), Dr. Fernando said the government has spent Rs. 57 billion on a fuel subsidy, which is due to conclude at the end of this month.
He said the government will review the prevailing economic conditions before deciding whether the subsidy can be extended, while emphasising that every effort will be made to avoid placing an unnecessary financial burden on the public.
The Deputy Minister explained that the recent adjustment in domestic fuel prices was made in response to a sharp increase in international oil prices triggered by the conflict in the Middle East.
He noted that global crude oil prices have since declined, and consumers are expected to benefit once fuel purchased at the lower international prices reaches Sri Lanka.
According to Dr. Fernando, the fuel currently available in the local market, as well as shipments expected over the next two months, had been imported at the higher prices that prevailed last month. As a result, any reduction in local fuel prices would depend on future consignments purchased at the lower global rates.
He further said that international crude oil prices had risen from around USD 64–65 per barrel to nearly USD 125 during the height of the conflict before falling back to approximately USD 70 per barrel.
Dr. Fernando added that despite the steep increase in global prices, the government had opted for only a limited increase in local fuel prices instead of fully passing the additional costs on to consumers.
He also noted that Rs. 57 billion of a Rs. 100 billion relief package had been allocated to subsidise fuel costs and reiterated that the government would assess the situation before deciding on any future subsidy.
“The government has no intention of placing unnecessary pressure on the public and is prepared to extend relief whenever conditions permit,” he said.
