Diesel cost has climbed to Rs. 720 per litre globally, President Anura Kumara Dissanayake says, warning CPC losses cannot continue.
Diesel cost has risen to Rs. 720 per litre due to the war situation in the Middle East and the sharp increase in global fuel prices, President Anura Kumara Dissanayake said.
The President made the statement while attending the Nuwara Eliya District Special Coordination Committee meeting.
He said that although global market prices have increased significantly, the government is currently providing a litre of diesel to the public at a concessionary price of Rs. 392.
According to the President, the government is bearing a direct subsidy of Rs. 100 per litre to maintain that concessionary price.
Commenting further on the existing economic challenges, President Dissanayake used figures to show how rapidly Sri Lanka’s foreign exchange spending on fuel imports has increased.
He said the US$ 98 million spent on fuel imports in February is estimated to rise nearly sixfold to US$ 522 million by May.
The President stressed that strong fiscal discipline is essential in the face of this situation.
He said the Ceylon Petroleum Corporation and the Ceylon Electricity Board cannot be allowed to continue making losses and becoming a burden on the Treasury, as happened in the past.
President Dissanayake also said there is a need to limit fuel consumption to some extent in order to control the amount of foreign exchange flowing out of the country.
He added that the government is making every effort to avoid placing an unnecessary burden on the people.
Referring to the recent electricity tariff increase, the President said steps were taken to ensure that the impact was limited to only a small percentage, around five percent of consumers, without affecting the majority.
