Govt. Monthly Fuel Subsidy Hits Rs. 20 Bn Amid Global Spikes 📈

The Sri Lankan government is currently absorbing a monthly loss of Rs. 20 billion to subsidize fuel costs, despite recent price revisions. Cabinet Spokesman Dr. Nalinda Jayatissa confirmed the state continues to shield consumers from the full impact of volatile global markets. • Subsidy Breakdown The state subsidizes diesel by Rs. 100 per litre. Petrol receives a subsidy of Rs. 20 per litre. Total potential economic burden without price adjustments estimated at US$ 1.5 Bn. • Global Market Volatility (Feb 28 – Mar 20) Petrol prices rose by 89% (up US$ 70.98). Diesel prices surged by 141% (up US$ 129.76). Crude oil increased by 92% (up US$ 66.35). Import premiums for diesel have spiked by up to 57%. • Supply & Infrastructure Local refining covers 30% of diesel and 20-25% of petrol demand. A 37,000-ton diesel shipment is due on March 25, with further consignments scheduled through mid-April. An April crude oil shipment has been cancelled and rescheduled for June. • Economic Strategy Focus is on preserving foreign reserves and exchange rate stability to prevent the dollar from reaching "uncontrollable levels." The Treasury is shifting toward targeted welfare support rather than unsustainable universal subsidies. The government is advocating for "mindful usage" of energy as a civic responsibility ahead of the festive season. _Note: Figures based on provisional data and current global market trends._