Deputy Minister of Finance and Planning Dr. Anil Jayantha Fernando says the government expects to provide relief to the public in the future in line with the decline in global fuel prices.

Speaking at a press conference held at the Department of Government Information today (26), the Minister said the government has so far provided a fuel subsidy of Rs. 57 billion for fuel, which is scheduled to end this month.

He stated that a policy decision will be taken on whether the subsidy can be provided again, stressing that the government does not intend to place an unnecessary burden on the public.

The Minister noted that the government had to slightly increase domestic fuel prices following the sharp rise in global oil prices caused by the conflict in the Middle East.

He pointed out that global fuel prices are decreasing again and that the public would be able to benefit from these reductions once fuel purchased at the lower prices arrives in the country.

According to the Minister, the fuel currently available in the country and supplies expected over the next two months were ordered last month at higher rates. Therefore, any price relief will depend on future shipments procured at the reduced global rates.

Explaining further, Dr. Fernando said that global crude oil prices had increased from around USD 64-65 per barrel to as high as USD 125 due to the conflict, but had now fallen to around USD 70.

He stated that despite the sharp rise in global prices, the government had not sought to make profits by proportionately increasing local fuel prices and had instead opted for only a slight increase.

The Deputy Minister added that the government had allocated Rs. 57 billion as a fuel subsidy from a Rs. 100 billion package to absorb part of the cost burden, but that subsidy would end this month.

He further stated that after reviewing the prevailing conditions, the government would decide whether another subsidy could be provided.

“We are not ready to put unnecessary pressure on the public in any way. We are ready to provide that benefit in the future,” he added.