Sri Lanka Fuel Prices Static Despite Global Oil Drop

On June 25, Opposition Leader Sajith Premadasa called for an immediate reduction in fuel prices in Parliament, citing falling global oil prices. In response, Energy Minister Anura Karunathilake assured Parliament that the benefit of global fuel price reductions will "definitely" be passed on to the people. He also clarified that fuel subsidies are not provided equally across different fuel types, reiterating the existing subsidies of Rs. 100/liter for diesel and Rs. 20/liter for petrol, and confirming that the allocated Rs. 57 billion for subsidies has not been fully utilized.

Both the Ceylon Petroleum Corporation (CPC) Managing Director Mayura Neththikumara and Energy Minister Anura Karunathilake have stated that a significant change or reduction in current fuel prices is not possible at this time. This is attributed to global market prices, which, after a period of decline, increased again last Friday for both petrol and diesel. The CPC MD noted that global prices are not yet at pre-war levels and a continuous decline is not expected. The Energy Minister further revealed that the Cabinet has allocated Rs. 57 billion for fuel subsidies, and this amount has not been fully utilized. He also mentioned that fuel prices have been increasing since March.

Minister Bimal Ratnayake has indicated that fuel prices could be reduced by August or September if global oil prices remain stable. He clarified that the government is currently providing subsidies on diesel (Rs. 100/liter) and petrol (Rs. 20/liter) and has no intention of profiting from fuel sales, noting that procurement follows tender procedures.