The government has announced a diesel subsidy worth of Rs. 41 billion covering a three-month period, as the country faces renewed pressure from rising international petroleum prices.
Cabinet Spokesman Minister Dr. Nalinda Jayatissa confirmed this while speaking during the “360°” political talk show telecast on TV Derana.
The decision was made when the Cabinet of Ministers convened today under the patronage of President Anura Kumara Dissanayake.
On Saturday, President Dissanayake announced the allocation at a public rally in Gampaha, stating that the subsidy would cover October, November and December.
The announcement was made amid a sharp increase in international fuel prices, with the government seeking to prevent the full impact of global price increases from being passed on to domestic consumers.
International diesel prices have risen significantly compared with earlier in the year, while petrol prices have also recorded substantial increases. However, domestic fuel prices have increased at a slower rate, according to Ministers and those affiliated to the government.
The government had previously introduced fuel subsidies to cushion consumers from rising global petroleum prices. During an earlier three-month period, the government provided substantial assistance on diesel and petrol prices, helping to limit the impact of international market fluctuations on local consumers.
Under the latest subsidy programme, the government is expected to provide financial support to the Ceylon Petroleum Corporation (CPC) to help offset the higher cost of importing fuel.
The government's latest intervention is intended to provide temporary relief to consumers and businesses while limiting the immediate impact of international fuel price increases on the domestic market.
