Government announces 41 billion rupee diesel subsidy

The government has announced a 41 billion rupee diesel fuel subsidy intended to mitigate the impact of rising global fuel prices on consumers and distribution agents. Energy Minister Anura Karunathilaka stated that the plan, which is subject to Cabinet approval, will provide a subsidy of 70 rupees per liter of diesel.

The intervention aims to prevent international price increases from being passed directly to the public. Currently, fuel distribution companies are facing significant financial losses due to market instability and existing pricing formulas, with reported losses ranging from 120 to 247 rupees per liter.

The 41 billion rupee fund will be released in phases over three months. The allocation includes 15 billion rupees for October, 13.5 billion rupees for November, and 12.5 billion rupees for December.