Sri Lanka will not be able to immediately pass on the benefits of falling global crude oil prices to consumers, Energy Minister Anura Karunathilaka has said.
Global oil prices recently fell to their lowest level in three months following a preliminary agreement aimed at easing tensions between the United States and Iran. However, the minister explained that Sri Lanka procures fuel based on monthly purchasing schedules, meaning any benefit from lower international prices would only be reflected in orders placed after August.
Karunathilaka also said the QR-based fuel distribution system would continue to operate without interruption.
He noted that the Government must maintain crude oil prices within a certain range to ensure fuel prices remain stable in the domestic market. To manage the current situation, authorities have approved Rs. 47 billion in funding.
The Government had previously approved Rs. 19 billion for fuel subsidies in February and March, while additional measures have been taken for May and June.
Meanwhile, Chairman of the Ceylon Petroleum Corporation Janaka Rajakaruna said the corporation had incurred losses of Rs. 5 billion since January due to various fuel subsidy programmes.
He warned that reducing fuel prices at this stage could jeopardise the concessions already being provided to consumers, adding that similar pressures were affecting refined fuel and other petroleum products.
As a result, a fuel price reduction is not expected in the immediate future, he said.
