Download Causes of Vehicular Emissions

CAPACITY DEVELOPMENT WORKSHOP ON
FOSSIL FUEL AND RENEWABLE ENERGY (FFRE) FOR
INDIAN OCEAN AND AFRICAN SIDS
Organized by
United Nations Office for Sustainable Development (UNOSD) and
Commission Maurice Ile Durable (MID Commission), Mauritius
Clos Saint-Louis, Domaine Les Pailles, Mauritius, 12-16 May 2014
Subsidies for Fossil Fuels in Sri Lanka
Thusitha Sugathapala
Director General
Sri Lanka Sustainable Energy Authority
Ministry of Environment & Renewable Energy
OVERVIEW

Sri Lanka at a Glance

Fossil Fuel Sector

Taxes / Subsidies of Fossil Fuels
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SRI LANKA AT A GLANCE
 Socio-Economic
Population
20.2 Million
No. of HHs
4.7 Million
Per Capita GDP 2,900 US$
GDP Growth rate ~ 6 to 8 %
 Energy Sector
Main Sources of Energy:
Biomass, Petroleum, Coal, Large hydro,
Other REs (Small hydro, wind, solar)
Total Consumption: 8.927 MToE
Industry
24 %
Transport
28 %
Domestic & Commercial 48 %
 Electricity Sector
Total Installed Capacity: 3180 MW
Peak Load:
2150 MW
Gross Generation:
11,800 GWh
HH Electrification:
94 %
Installed Capacities by Source
Hydro
1,357 MW
Thermal 1,638 MW
NRE
384 MW
Elect.Generation by Source
Hydro
Thermal
New RE
30 %
64 %
6%
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FOSSIL FUEL SECTOR
Primary Energy Supply (kTOE)

Primary Energy Supply by Source
Coal
12000
New RE
New RE
10000
8000
Hydro
Large Hydro
Coal
Petroleum
6000
Oil
Biomass
4000
Biomass
2000
0
Year
4
FOSSIL FUEL SECTOR

Electricity Sector – Gross Generation
Coal
New RE
Oil
Hydro
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FOSSIL FUEL SECTOR

Importation of Fossil Fuels
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FOSSIL FUEL SECTOR

Future Demand
Sri Lanka Oil Demand Forecast (000' bpd)
 Petroleum Oil (000’ bpd)
160
140
120
100
80
60
40
20
0
1995
2000
2005
2010
2015
2020
2025
2030
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FOSSIL FUEL SECTOR

Future Demand for Coal (Grid Electricity)
Energy Mix - 2015
Existing
Major
Hydro
28%
Oil
32%
Coal
34%
Energy Mix - 2020
Oil
6%
Coal
62%
New Major
Hydro
0%
NCRE
6%
Energy Mix - 2032
Existing
Major
Hydro
22%
New Major
Hydro
2%
NCRE
8%
Oil
1%
Existing
Major
Hydro
12%
Coal
79%
New Major
Hydro
2%
NCRE
6%
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TAXES / SUBSIDIES OF FOSSIL FUELS

Government Policies
 Until recently, furnace oil and kerosene were provided to
the customers at subsidized rates
 Promote industrial growth / competitiveness
 Reduced energy cost for rural (non-electrified) households
 Further, increasing share of oil in electricity sector resulted
in cost escalation and therefore fiscal instruments were
used in managing the product prices.
 However, increasing importation of oil to cater for demand
growth severely affected the national budget that the
government was forced to remove almost all the
subsidies.
 Yet, compared to other imported commodities, the taxes
imposed for fossil fuels are lower in general.
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TAXES / SUBSIDIES OF FOSSIL FUELS

Government Policies
 Cost revisions
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TAXES / SUBSIDIES OF FOSSIL FUELS

Taxes on Fossil Fuels
 Transport
Exercise Duty
Custom Duty
Taxes
VAT
Crude
-
-
-
2%
-
Petrol
25 LKR/liter
35 LKR/liter
-
5%
-
Diesel
2.50 LKR/liter
15 LKR/liter
-
5%
-
Fuel
PAL
NBT
5%
Jet Fuel
VAT - Value Added Tax; PAL - Ports & Airports Development Levy;
NBT - Nation Building Tax
 Heat / Power.
Exercise Duty
Custom Duty
Taxes
VAT
Fuel Oil
-
-
-
5%
-
LPG
-
-
-
5%
2%
Kerosene
-
-
-
5%
-
NG
Coal
(Anthracite,
Bituminous)
-
5%
12%
5%
2%
-
-
-
-
-
Lignite, Coke
-
-
12%
5%
Fuel
PAL
NBT
2%11
Thank You
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