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Sri Lanka mulls replacing kerosene subsidy with coupons to prevent adulteration

COLOMBO (EconomyNext) – The head of Sri Lanka’s sole oil refiner, the state-owned Ceylon Petroleum Corporation (CPC), has suggested replacing the government’s direct subsidy on kerosene for poor people with coupons to prevent adulteration.

The practice of mixing petrol with kerosene, which is sold at a heavily subsidized price, in fuel stations is a serious problem in the island, said J R Wickramasinghe, Chairman and Managing Director of the CPC.

“Adulteration of products with kerosene is an islandwide problem caused mainly by the heavily subsidized kerosene prices at the filing stations,” he told a forum organized by the Public Utilities Commission of Sri Lanka on the downstream petroleum industry.

“I propose that the best way out is to issue coupons  to deserving sectors or have a non-market subsidising mechanism instead of directly subsidizing kerosene.”


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