Govt bears Rs. 20 bln monthly fuel subsidy; 37,000 MT diesel shipment to arrive March 25 – Minister

Minister Nalinda Jayatissa has announced that a vessel carrying 37,000 metric tons of diesel is scheduled to arrive in the country on March 25.

Speaking at a press conference held at the Department of Government Information regarding recent fuel price increases, the Minister stated that this follows a previous shipment of 37,000 metric tons of petrol received on March 7 and 8.

He noted that these imports reflect the significant price volatility currently prevailing in the global market.

“Furthermore, a vessel carrying 37,000 metric tons of diesel is scheduled to arrive on March 25,” the Minister said.

The Minister also emphasized that the Ceylon Petroleum Corporation (CPC) continues to operate under severe financial losses.

Based on the tenders submitted on March 17, the Minister provided a detailed schedule of upcoming fuel consignments. 

Two shipments of 37,000 metric tons of diesel are expected on April 6, 7, and 8, followed by 35,000 metric tons of Jet A-1 fuel on April 10 and 11. Additionally, 30,000 metric tons of fuel oil are scheduled for April 12 and 13, while 30,000 metric tons of petrol are expected on April 16 and 17.

Notably, the crude oil shipment originally scheduled for April has been cancelled. Instead, a 30,000 metric ton crude oil vessel is now expected to arrive in June, he noted.

Regarding the economic impact, the Minister stated that despite the price revisions implemented on March 21, the government continues to absorb a substantial portion of fuel costs in order to protect consumers. 

Specifically, the state is bearing a cost of Rs. 100 per litre of diesel and Rs. 20 per litre of petrol, resulting in an estimated monthly subsidy expenditure of approximately Rs. 20 billion.

He further warned that if the government were to bear the full cost, it would lead to an additional annual expenditure of approximately USD 1.5 billion, which would have a severe impact not only on the fuel sector but also on the national economy as a whole.

Addressing the global geopolitical situation, Minister Jayatissa stated that the duration of the conflict involving major powers such as the United States, Israel, and Iran remains unpredictable. 

He emphasized that even if the conflict were to end immediately, the resulting damage to global infrastructure and oil production would prevent a rapid recovery of the local economy.

Consequently, he stressed the necessity of minimizing fuel consumption, noting that 5,995,365 individuals are now registered on the QR code-based fuel quota system, including two million new registrations.

In conclusion, the Minister stated that while fuel quotas have been increased as of today, the public must remain mindful of their energy consumption. 

He confirmed that all Ministry Secretaries have been instructed to take proactive measures to reduce energy usage within the public sector, ensuring that the government sets an example during this period of economic challenge.