Opposition Parliamentarian Ravi Karunanayake has called for any government subsidy provided to cushion fuel prices to be channelled directly to the Ceylon Petroleum Corporation (CPC), rather than benefiting foreign fuel distributors.
Karunanayake raised the issue in Parliament amid the Government’s fuel subsidy measures and the operation of private fuel distributors. The Government has said it is required to provide equal treatment to fuel operators under agreements signed with private distributors in 2022.
Karunanayake argued that if the Government decides to maintain subsidised fuel prices, the financial support should be directed to the state-owned CPC, while private companies should be allowed to import and sell fuel at their own prices.
He questioned the use of public funds to support foreign companies that import fuel using their own foreign exchange, and argued that such a mechanism could place additional pressure on the CPC.
The MP also referred to the existing fuel pricing formula, stressing that fuel prices need to reflect international market conditions and the actual costs involved rather than being reduced arbitrarily.
His comments come as the Government continues to adjust fuel prices in line with international market conditions. CPC increased the prices of Petrol 92, Auto Diesel and Super Diesel from October 1, while Petrol 95 and kerosene prices remained unchanged.
Karunanayake also criticised what he described as an ineffective role for the Opposition, saying opposition parties should go beyond street protests and offer practical economic alternatives and examine the reasons behind government policy decisions.
The Government has previously stated that the 2022 agreements with private fuel distributors prevent it from providing a subsidy exclusively to the CPC. Energy Minister Anura Karunathilaka said the agreements require equal treatment of operators, including Lanka IOC, Sinopec and RM Parks.
