Fuel subsidies will remain in place amid global price uncertainty, says minister

Sri Lanka
By Editor_1
Fuel prices across Sri Lanka have risen by a third since the United States and Israel began bombing Iran - AFP/File

COLOMBO – Sri Lanka has not taken any decision to suspend fuel subsidies or reduce fuel prices, Energy Minister Anura Karunathilaka told Parliament on Thursday (25), citing continued uncertainty in global oil markets following the conflict in the Middle East.

Responding to questions raised by Opposition Leader Sajith Premadasa under Standing Order 27(2), the minister said the government would continue to monitor international fuel prices and pass on any benefits to consumers if prices decline and stabilize.

“The conflict in the Middle East has not fully ended and global fuel prices remain volatile,” Karunathilaka said, adding, “If prices come down and stabilize, the government will certainly pass those benefits on to the people.”

Noting that disruptions to global fuel supplies caused by the conflict had triggered sharp increases in international oil prices, resulting in fluctuations in domestic fuel costs, he said the full impact of global price increases has not been transferred to consumers due to the government’s subsidy program.

The government has allocated Rs 57 billion to support fuel subsidies, currently providing relief of Rs 100 per litre of diesel and Rs 20 per litre of Octane 92 petrol.

Karunathilaka said the entire allocation had not yet been utilized and stressed that no decision had been made to discontinue the subsidy scheme.

-ENCL

Editor_1
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