Cabinet approves Rs. 40.65 b diesel subsidy

Wednesday, 30 September 2026 00:24 - - {{hitsCtrl.values.hits}}

The Cabinet has approved funding to subsidise Auto Diesel and Industrial Diesel prices for the next three months, as rising global fuel prices driven by the conflict in the Middle East threaten to push up domestic prices, Cabinet Spokesperson and Minister Dr. Nalinda Jayatissa said yesterday.

Briefing the media on decisions taken at the Cabinet meeting held on Monday, Dr. Jayatissa said the Government would allocate Rs. 15 billion for October, Rs. 13.5 billion for November and Rs. 12.15 billion for December, subject to the respective monthly limits. The allocations total Rs. 40.65 billion.

The measure was intended to keep domestic diesel prices affordable, rather than raising them in line with international market prices.

The intervention follows fuel subsidies provided in April, May and June 2026 to limit the impact of higher global petroleum prices on households and the wider economy. According to the Government, the continuing conflict in the Middle East has made further intervention necessary.

The funding was approved on a proposal by the President, in his capacity as Finance, Planning and Economic Development Minister.