The government will seek to bear the maximum possible share of rising fuel costs to limit the burden on the public as global oil prices continue to increase, Cabinet Spokesman Minister Dr. Nalinda Jayatissa said.

Speaking at the weekly Cabinet media briefing, Minister Jayatissa said the Cabinet had approved a further Rs. 41 billion from the Treasury for fuel subsidies over the next three months.

“The government is trying to manage the situation by bearing the maximum possible share of the cost, rather than placing that burden on the people,” he said.

The Minister said the decision was taken in response to higher international fuel prices and the wider impact fuel price increases can have on the cost of goods and services.

He explained that when fuel prices rise, the prices of goods and services can also increase, while subsequent reductions in fuel prices do not necessarily lead to an immediate or corresponding decline in those prices.

The government had therefore decided to use funds from the Treasury to absorb as much of the additional fuel cost as possible and provide relief to consumers, he said.

Under the current Treasury allocation, the three-month subsidy will be directed towards diesel rather than petrol.

Fuel prices will continue to be calculated monthly, with the government covering its allocated share of the cost. Further decisions on fuel pricing and the management of the subsidy will depend on developments in international markets.

Dr. Jayatissa also said there was no shortage of fuel in the country, noting that the Ceylon Petroleum Corporation and other companies had imported sufficient stocks.

He said there was therefore no need for the public to form fuel queues.

The Minister added that the Treasury had provided more than Rs. 100 billion in fuel subsidies over the past six months, as the government sought to absorb a significant portion of the rising cost of fuel.