President Anura Kumara Dissanayake says the Government is considering a fuel subsidy to cushion consumers from a possible domestic fuel price increase from October 1.
Speaking at a public rally in Akuressa on September 20, the President said prevailing international market prices indicated that domestic fuel prices would have to rise when calculated under the existing pricing formula.
He said the Government expected to intervene through a subsidy rather than pass the entire additional burden to consumers.
The statement signals a possible new Government intervention as international petroleum prices place renewed pressure on Sri Lanka's domestic fuel-pricing system.
However, the President's statement should not be interpreted as confirmation that current retail fuel prices will remain unchanged.
The exact subsidy amount, eligible fuel products, duration, financing mechanism and final effect on October retail prices have not yet been officially specified.
Separate reporting has also indicated that the Government has been considering discussions connected with implementing a new subsidy arrangement.
Important limitation
This is a policy intention under consideration, not a newly enacted Budget measure or a confirmed new statutory pricing mechanism.
Do not headline this as:
- "Government freezes fuel prices";
- "Fuel prices will not increase";
- "Rs. X subsidy approved";
unless a subsequent authoritative announcement establishes those facts.