Batticaloa District MP Shanakiyan Rasamanickam on Friday (6) questioned how billions of rupees allocated by the Treasury for fuel subsidies have been utilised, demanding greater transparency over whether the financial relief provided to the Ceylon Petroleum Corporation (CPC) has translated into benefits for consumers.
Raising the issue in Parliament, he called on the Government to introduce targeted fuel subsidies for farmers, fishermen, and the public transport sector, amid rising fuel prices and the increasing cost of living.
Referring to the latest economic indicators, Rasamanickam said that headline inflation had risen to 8.3% in October, while food inflation had reached 8.8%. He also pointed out that following the latest fuel price revision on Monday (2), prices of bakery products, including bread, had increased by Rs. 5.
Questioning the Government’s claim that fuel was being sold below import cost, he referred to Deputy Minister Kaushalya Ariyarathne’s statement in Parliament and sought clarification on the actual import and retail selling prices.
According to Rasamanickam, diesel is being imported at Rs. 307 per litre and petrol at Rs. 322 per litre. He questioned whether the current pump prices were genuinely below or at the level of the import cost.
He also raised concerns over electricity tariff increases, noting that tariffs had risen by 10.3% in April and a further 18% subsequently. With the Ceylon Electricity Board proposing another tariff revision for the next quarter, he sought clarification on a report by the national grid company indicating that another increase was not necessary at present.
He also questioned whether the Government intended to continue the existing Rs. 70 per litre diesel subsidy, reportedly due to expire on 31 December.
Turning to Treasury finances, Rasamanickam cited the Ministry of Finance’s Mid-Year Fiscal Position Report for 2026, which showed that the Treasury’s cash balance stood at Rs. 690.3 billion at the end of June.
He questioned why additional taxes were being imposed on fuel while the Treasury held such a substantial cash balance, arguing that available public funds should be used to provide direct relief to consumers.
He said Rs. 57 billion had reportedly been allocated for fuel and electricity subsidies during the first six months of 2026. Of this, Rs. 41 billion had been provided to the CPC between April and June, while approximately Rs. 15 billion had been allocated for electricity tariff subsidies.
However, during the same period, the CPC had recorded a net profit of Rs. 29.2 billion, prompting him to question the extent to which the Government’s financial assistance had contributed to the corporation’s profitability and whether consumers had received corresponding benefits.
Rasamanickam further recalled that Rs. 750 million in taxpayers’ money had been paid through the Treasury during the previous year towards loans owed by the CPC to the Bank of Ceylon and People’s Bank.
Against this backdrop, he questioned whether the primary responsibility of a State-owned petroleum corporation should be to maximise profits or ensure affordable fuel for the public.
He argued that fuel relief should be designed to reach those most affected by price increases, particularly farmers, fishermen, and public transport operators, rather than relying solely on financial assistance to the petroleum corporation.