Despite the State-provided subsidy for fuel coming to an end next month, no discussion has taken place yet regarding the renewal of the fuel subsidy for fishermen beyond the current three-month relief period ending in July, according to Deputy Minister of Fisheries Rathna Gamage.
In April, the Government announced a comprehensive relief package to ease the impact of the ongoing Middle East crisis on several affected sectors. As part of this initiative, an energy relief package was introduced to provide on-budget fuel subsidies for fishermen.
The broader scheme included a subsidy of Rs. 100 per litre for diesel and Rs. 20 per litre for petrol, effective for three months starting in May. However, super diesel and super petrol continue to be priced according to market rates.
Kerosene, which is heavily subsidised, is used by a large number of coastal fishermen who use one-day boats (with outboard motors). For the fisheries sector specifically, one-day fishing vessels received an additional subsidy of Rs. 50 rupees per litre of fuel.
According to the Department of Fisheries, 37,500 one-day fishing vessels operating across the country are eligible for this allowance. Each eligible vessel is entitled to the Rs. 50 per litre concession for up to 25 litres per day, for a maximum of 25 days per month.
Accordingly, a boat owner can receive up to Rs. 31,250 per month for a period of three months, with the payment being directly credited to a registered bank account. Additionally, the Government provided a one-time allowance of Rs. 150,000 for multi-day fishing vessels, benefiting 5,500 registered vessels.
Addressing concerns surrounding the impending conclusion of this specific financial relief mechanism, Gamage clarified that the Government had systematically allocated the required funds to guarantee the structural execution of the programme for its intended duration.
The clarification comes amidst rising anxieties within the local fishing community over the potential impact of removing the subsidies on artisanal fisheries, particularly those reliant on small-scale vessels.
The temporary relief framework was confirmed to run for a duration of three months, having commenced implementation on 20 May. According to the ministry, the fully financed scheme was structured to encompass the full months of May, June, and July, countering prevailing reports that suggested the framework would hit an abrupt ceiling by the end of June.
“We have not explicitly stated that the subsidy will be removed as of yet. Given the current volatility of global market prices for oil and crude oil, we are unable to make any accurate predictions at this stage. We cannot make a firm decision right now on whether oil prices will decrease or increase in the coming month. What we currently have in place is a temporary relief measure designed to last for three months. Following this period, we will carefully review the situation and decide on our future course of action based on prevailing oil prices,” Gamage stated.