President Anura Dissanayake has stated that while diesel prices have dropped to below Rs. 300 per liter since the National People’s Power government assumed office, it is not possible to continue reducing diesel prices indefinitely. He emphasized that the government has already taken significant steps to lower fuel costs but cannot sustain a monthly reduction.
Addressing a gathering in Aluthgama, the President highlighted that diesel carries a substantial tax, which cannot be eliminated due to financial constraints. He explained that the revenue generated from this tax is being utilized to address the staggering Rs. 900 billion debt owed by the Ceylon Petroleum Corporation.
“The Treasury depends on this tax revenue to manage the debt burden of the Petroleum Corporation. Until this massive debt is cleared, it will be impossible to eliminate the tax on diesel,” he stated. He further assured that once the debt is paid off, the government will reconsider the tax policy on oil.
President Dissanayake’s comments come amidst growing public concern about the cost of living and fuel prices. He reaffirmed his administration’s commitment to balancing economic relief measures with fiscal responsibility.
