Fuel Import Costs Up 50%, Limiting Price Relief Despite Rs. 57 Billion Subsidy Allocation: Minister

COLOMBO, November 3, 2026 — Sri Lanka’s fuel import costs have increased by approximately 50% compared with last year, limiting the government’s ability to provide further price relief despite allocating Rs. 57 billion for fuel subsidies, Energy Minister Anura Karunathilaka said.

Speaking on TV Derana’s “360°” programme on November 2, the Minister said rising global crude oil prices amid the Middle East conflict had compelled the government to increase domestic fuel prices.

He described the international price surge as an external development beyond Sri Lanka’s control and said the resulting import costs continued to place pressure on fuel pricing.

Karunathilaka rejected some Opposition proposals as impractical, particularly calls to sell fuel to consumers at the price at which it arrives at the port.

He said he was unaware of any country using such a pricing arrangement.

The Minister also argued that reducing fuel taxes and providing subsidies had an equivalent effect in delivering relief, noting that the government had allocated Rs. 57 billion for subsidies at the outset of the issue.

However, he said the scale of the increase in import expenditure meant the government could not fully offset higher prices or offer substantial additional concessions while the pressure persisted.