Source : PTI |The Sri Lankan government has decided to provide a retail price subsidy on diesel widely used for public transport, commercial and industrial purposes to ease the economic difficulties arising from the tensions in West Asia.
Cabinet spokesman and minister Nalinda Jayathissa told reporters Tuesday that under the programme, the government will provide relief on the retail prices of Auto Diesel and Industrial Diesel for three months.
The measure is aimed at preventing domestic fuel prices from rising in line with increases in international markets and keeping fuel prices at a level considered manageable for consumers.
“The government did provide relief by the decision to grant a subsidy during April, May and June 2026. That was done to reduce the impact of rising global petroleum prices on the day-to-day lives of citizens and the wider economy,” Jayathissa said.
Under the approved arrangement, allocations will be subject to monthly limits of Lankan rupees (LKR) 15 billion for October, LKR 13.5 billion for November and LKR 12.5 billion for December 2026.
The government said the programme is intended to provide relief to the public while preventing a sharp increase in domestic diesel prices resulting from developments in international petroleum markets.
The conflict in West Asia has disrupted global energy markets and pushed up international oil prices. In Sri Lanka, fuel-import expenditure rose 68 per cent year-on-year in July, while expenditure during January-July was up 59.9 per cent from a year earlier, according to its Central Bank data.
