The government is bleeding Rs. 100 per litre on diesel and Rs. 20 on petrol, with private companies demanding a Rs. 200 hike, as officials admit uncertainty over how long they can sustain mounting losses amid the ongoing Iran war.
Deputy Minister of Transport Prasanna Gunasena has stated that the government is under severe financial pressure to maintain fuel prices without increasing them. He pointed out that the majority of oil consumption in Sri Lanka currently comes through the private sector. Since private companies are reluctant to operate at a loss, they have requested a price hike of between Rs. 140 and Rs. 200 under the current circumstances.
However, the Minister said that the government and the private sector will jointly bear the burden to provide fuel at a concessional rate. As a result, the government is currently losing Rs. 100 per litre on diesel and Rs. 20 per litre on petrol. He also revealed that the total monthly loss to the government from these subsidies is approximately Rs. 20 billion.
The Deputy Minister further emphasized that continuing to bear this loss is problematic given the rise in global oil prices, as there is no certainty about when the ongoing Iran war will end. He noted that it is unclear how long the government will be able to hold out under these conditions.
