SriLanka, Oct. 1 -- The government will provide Rs. 70 per litre of diesel as part of a Rs. 41 billion fuel subsidy approved by the Cabinet to cushion consumers and fuel distributors from the impact of surging global oil prices, Energy Minister Anura Karunathilaka said.

The subsidy is intended to prevent the full impact of rising international fuel prices from being passed on to consumers.

Karunathilaka said fuel distribution companies have reported varying levels of losses under the current pricing structure amid the sharp increase in global fuel prices.

According to the Minister, companies have cited losses ranging from Rs. 120 to Rs. 247 per litre of diesel, with figures of Rs. 135, Rs. 247, Rs. 192 and Rs. 120 per litre reported by...