Sri Lanka has decided to implement a subsidy for Auto Diesel and Industrial Diesel for the upcoming three months, while petrol will not benefit from this relief, announced Minister Nalinda Jayatissa.
The subsidy allocation has been set at 15 billion rupees for October, followed by 13.5 billion rupees in November, and 12.15 billion rupees in December.
A cabinet document indicated that prior measures were taken to offer a fuel subsidy to the public during April, May, and June 2026 to alleviate the effects on daily life and the economy stemming from increased global oil prices due to the ongoing conflict in the Middle East.
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During the April to June period, the government utilized 57 billion rupees from a larger relief package of 100 billion rupees to subsidize diesel by 100 rupees per litre and petrol by 20 rupees per litre, following a surge in global prices due to the outbreak of hostilities in the Middle East in late February.
With the conflict still ongoing and crude oil prices rising again, the government has resolved to allocate an additional 41 billion rupees to mitigate the rising transportation costs that could otherwise impact the wider economy.
The cabinet document emphasized that this initiative aims to keep prices manageable for consumers, minimizing the impact of escalating international fuel prices and providing relief to the public.
In response to inquiries from reporters regarding potential increases in retail fuel prices, Jayatissa acknowledged that rising global market prices would exert some pressure, but affirmed that the subsidy aims to cushion the impact on consumers.
“Fuel prices in the international market have already risen. The government’s goal is to absorb as much of this increase as possible to prevent the full burden from falling on the public, thereby managing the overall price,” Jayatissa explained.
The Ceylon Petroleum Corporation (CPC) is set to announce the final price adjustments and the specific subsidy rates per litre during their monthly review. Jayatissa also noted that both the CPC and Lanka IOC maintain sufficient import stock and cautioned fuel stations against hoarding supplies.
