• CPC says stocks sufficient until end-July
• No sharp increase in prices expected 

The Government has no plan to stop the current fuel subsidy arrangement until the crisis linked to the Middle East (ME) conflict eases, according to the Energy Ministry.

Speaking at a special District Coordination Committee meeting in Nuwara Eliya recently, President and Finance Minister Anura Kumara Dissanayake said the Government could not continue indefinitely to absorb the losses incurred in fuel and electricity supply.

When contacted by The Daily Morning as to whether the Government would make any decision regarding the continuation of the arrangement, Energy Minister Anura Karunathilaka said the Government would continue to bear part of the fuel cost during the period of economic pressure faced by the public. “What the President said was that this could not continue indefinitely. Once the current crisis situation eases, the subsidy will be removed. During this period, the Government will bear the cost. Cabinet of Ministers approval was obtained to reduce the economic pressure faced by the people due to the ME situation.”

At present, the Government bears Rs  100 per litre of diesel and Rs  20 per litre of petrol under the existing subsidy arrangement.

On an earlier occasion, Cabinet Spokesperson Dr  Nalinda Jayatissa said that the Government is currently absorbing around Rs  20 billion per month to cushion the impact of fuel costs on consumers  He warned that if the Government is to bear the full cost of fuel imports, it could lead to an additional annual expenditure of about US$ 1.5 b, placing heavy pressure on the fuel sector and the broader economy.

Meanwhile, Sri Lanka has sufficient fuel stocks available until the end of July, according to Managing Director of the Ceylon Petroleum Corporation (CPC), Dr  Mayura Neththikumarage. He stated that two additional crude oil shipments are scheduled to arrive in the country tomorrow (28) and on 31 May. Speaking on domestic fuel prices, Dr  Neththikumarage said that a sharp increase in prices is not expected in the near future, although a price reduction is also unlikely. 

He further noted that many consumers have rushed to filling stations following reports of a possible fuel price hike. However, he emphasised that no decision has been taken to increase fuel prices and assured that there is no fuel shortage in the country. Dr  Neththikumarage also said that all expected fuel shipments for this month (May) have already arrived, while the upcoming crude oil cargoes would help maintain fuel supplies in the coming months. He added that although global diesel prices rose in April, they are now gradually declining, reducing the need for a significant fuel price increase that had previously been anticipated.

Elsewhere, the Cabinet of Ministers has granted its approval for a proposal presented by Karunathilaka to implement a comprehensive national programme titled “Surakimu Lanka” aimed at strengthening the country’s energy security. The initiative comes in response to Sri Lanka’s increasing dependence on fossil fuels, recurring supply disruptions caused by unpredictable weather conditions and geopolitical instability, volatility in global fuel prices, and the rising economic burden of fuel imports on the national economy. Inefficient and irregular electricity consumption patterns have further intensified these challenges. 

Under this programme, efforts will be made to shift electricity consumption towards periods of higher renewable energy generation, while improving overall energy efficiency and promoting behavioural changes among the public regarding energy use. The integrated initiative will be implemented jointly by the Presidential Secretariat, the Energy Ministry, the Sustainable Energy Authority, the Clean Sri Lanka Secretariat, along with all relevant State institutions, State-owned enterprises, the private sector, and the general public.