Shanakiyan questions Rs. 41 b fuel subsidy as CPC books Rs. 29.2 b profit

Saturday, 7 November 2026 00:00 - - {{hitsCtrl.values.hits}}

MP Shanakiyan Rasamanickam

Ilankai Tamil Arasu Katchi (ITAK) MP Shanakiyan Rasamanickam yesterday questioned in Parliament whether the Rs. 41 billion in Treasury fuel subsidies had reached consumers, and pointed to a Rs. 29.2 billion net profit at the Ceylon Petroleum Corporation (CPC) over the same period.

Addressing the House, Rasamanickam asked whether the full benefit of the April to June 2026 allocation had been passed through in lower pump prices, and whether the state oil monopoly’s purpose was to earn profit or to supply affordable fuel.

The corporation’s profit and the subsidy cover the same quarter.

Rasamanickam challenged Deputy Minister Kaushalya Ariyarathne’s statement that fuel is sold below import cost, citing figures of Rs. 307 a litre for imported diesel and Rs. 322 for petrol, and seeking a comparison with prevailing retail prices and the pricing formula.

Citing the Finance Ministry’s Mid-Year Fiscal Position Report, Rasamanickam said the Treasury held a cash balance of Rs. 690.3 billion at the end of June 2026, and asked why further taxes were being levied on fuel against reserves of that size.

The MP sought the total subsidy allocated since January, the split between the CPC and private distributors, and monthly outlays on fuel and electricity relief. He asked whether the Rs. 70 a litre diesel subsidy would run past 31 December, 2026.

A further Rs. 41 billion has already been approved to subsidise Auto Diesel and Industrial Diesel across October, November and December.

Rasamanickam said headline inflation reached 8.3% in October and food inflation 8.8%, and warned that costlier diesel would drive up production costs in the coming Maha season.

He pressed for targeted relief for farmers, fishermen and public transport operators, arguing it would reach households and productive sectors faster than a blanket subsidy, and that support for bus operators would ease fares.

Rasamanickam demanded disclosure of how the subsidy money has been spent and whether it has reached consumers.