The Government says any reduction in fuel prices in Sri Lanka is likely to be considered only after August or September, provided global oil prices remain stable at current levels.
Energy Minister Anura Karunatillake and Transport, Highways and Urban Development Minister Bimal Rathnayake said lower international fuel prices cannot be immediately passed on to consumers due to Sri Lanka’s fuel procurement process, under which supplies are purchased in advance through monthly tenders.
Karunatillake said recent declines in global oil prices would only affect Sri Lanka when new fuel stocks are procured in the coming months, while Rathnayake said the public could benefit from lower prices by August or September if international prices remain unchanged.
The ministers noted that the Government is currently subsidising fuel prices to ease the burden on consumers, with significant subsidies being provided for both diesel and petrol.
Karunatillake also said the fuel quota (QR) system will remain in place for the time being, while officials stressed that the Government is not seeking to make profits from fuel sales.
The Government has spent billions of rupees on fuel subsidies in recent months to maintain stable domestic prices despite fluctuations in global oil markets, and any future reduction in international prices may first be used to offset subsidy costs before being reflected in retail fuel prices. (Newswire)