Minor fuel price hike may be necessary, says President

President Anura Kumara Dissanayake stated that a crisis situation has emerged in the country’s energy sector, citing rising global fuel and coal prices as well as declining water levels in reservoirs.

Addressing the National People’s Power (NPP) Colombo District May Day rally, the President said the government is currently providing a subsidy of Rs. 100 per litre on diesel to ease the burden on the public.

“Today, the actual cost of a litre of diesel is Rs. 482, but consumers are able to purchase it at Rs. 382 because the government provides a subsidy of Rs. 100 per litre through the Petroleum Corporation and other institutions,” he stated.

President Dissanayake further noted that the government has allocated Rs. 60 billion to maintain fuel subsidies despite the continued increase in global fuel prices.

He added that although limited fuel price revisions may become necessary in the future, the government remains committed to providing the maximum possible relief to the public.

“However, prices continue to escalate. We may have to implement small-scale fuel price increases, but we are working to provide the maximum possible subsidies. There is a crisis in the energy sector; coal prices have risen, and fuel prices have gone up,” he said.

The President also highlighted challenges in the electricity sector, stating that rising coal prices and reduced water levels in reservoirs have increased pressure on power generation costs.

He said the government has decided to provide electricity subsidies to 96 percent of consumers without imposing any tariff increase and has allocated Rs. 15 billion for that purpose.