Fuel Subsidies to End This Month, CPC Tells Parliamentary Committee
The Sri Lanka Petroleum Corporation (CPC) has informed the Committee on Public Finance (COPF) that the government’s fuel subsidy program is expected to end this month due to the exhaustion of allocated funds.
CPC officials made this statement while appearing before the committee.
During the meeting, COPF Chairman Harsha de Silva questioned officials about fuel imports, fuel stocks, and future fuel pricing. In response, CPC officials explained that the funds allocated for fuel subsidies have been depleted, and therefore subsidy payments for fuel will be discontinued from this month.
However, the officials also stated that no decision has yet been made to increase fuel prices.
Recently, President Anura Kumara Dissanayake noted that the government’s objective is to reduce fuel consumption and that measures such as fuel price adjustments have been considered in that context.
According to the President, the government has been providing a subsidy of approximately Rs. 100 per litre of diesel, allowing it to be sold to the public at Rs. 392 per litre. As a result, the Sri Lanka Petroleum Corporation has continued to incur financial losses. He also emphasized that such a situation is not sustainable over the long term.
Key Points
- Fuel subsidy funds are expected to run out this month.
- CPC says subsidy payments will be discontinued.
- No official decision has been taken yet to raise fuel prices.
- The government aims to reduce fuel consumption.
- CPC has been facing ongoing losses due to diesel subsidies.
