Fuel Subsidies to Expire in June as CPC Confirms No Decision Yet on Price Revision

The Ceylon Petroleum Corporation (CPC) has told Parliament's Committee on Public Finance (CoPF) that government fuel subsidies are set to come to an end in June, while confirming that no decision has yet been made regarding a potential increase in fuel prices.

Subsidies Nearing Their End

CPC officials appearing before the CoPF made clear that the current subsidy arrangements, which have helped cushion consumers from the full impact of global oil prices, are scheduled to lapse by the end of June. The disclosure has raised concerns among lawmakers and the general public over what the expiry of those subsidies could mean for pump prices across the country.

Despite widespread speculation about an imminent fuel price hike, CPC representatives stressed that no formal decision has been reached on revising retail fuel prices at this stage. The corporation indicated that discussions are ongoing, but stopped short of providing a firm timeline for any announcement.

Implications for Sri Lankan Consumers

The potential removal of fuel subsidies comes at a sensitive time for Sri Lanka, as the country continues its economic recovery following the severe financial crisis of recent years. Any upward revision to fuel prices would be expected to have a knock-on effect on transport costs, food prices, and the broader cost of living for ordinary Sri Lankans.

• Government fuel subsidies are expected to cease in June
• No decision has been made on revising fuel prices as yet
• CPC officials briefed the Committee on Public Finance on the current situation

Parliamentary Scrutiny

The CoPF, which oversees public expenditure and fiscal matters, has been closely monitoring the financial position of state energy institutions. Lawmakers on the committee are understood to have sought clarity on how the CPC intends to manage pricing and supply once the subsidy framework is withdrawn.

CPC officials confirmed to the Committee on Public Finance that fuel subsidies are expected to end in June, while emphasising that a final determination on fuel price adjustments has not yet been made.

The public and industry stakeholders will be watching closely in the coming weeks for any further guidance from the CPC and the relevant government ministries as the June deadline approaches.