Sri Lanka hikes fuel prices by up to 25 pc amid Middle East crisis; 2nd increase in 2 weeks
Sri Lanka on Sunday sharply increased fuel prices by up to 25 per cent, marking the second hike in just two weeks, as the island nation braces for the widening impact of the ongoing conflict in the Middle East on global energy markets.
The price of regular petrol was raised to Rs 398 per litre from Rs 317 earlier, while diesel -- widely used in public transport -- saw a steep increase of Rs 79, taking it to Rs 382 per litre.
The latest revision comes close on the heels of an eight per cent price hike announced last week, along with fuel rationing measures aimed at curbing consumption.
The government’s move reflects growing concerns over rising import costs and supply uncertainties.
Sri Lanka depends entirely on imports for its fuel needs and also procures coal from overseas to meet its electricity generation requirements.
The country mainly sources refined petroleum products from Singapore, Malaysia, and South Korea, while crude oil for its Iran-built refinery is imported from the Middle East -- a region currently facing heightened geopolitical tensions.
The back-to-back price hikes are expected to add pressure on transport costs and overall inflation, impacting both businesses and households already grappling with economic challenges.
Meanwhile, the ripple effects of the West Asia crisis are being felt across South Asia, with several countries increasingly worried about fuel supply disruptions.
In India, the Ministry of External Affairs (MEA) recently confirmed that it is examining requests from neighbouring countries, including Sri Lanka, Bangladesh, and the Maldives, for diesel supplies.
“India is a major exporter of refined petroleum products, especially to our neighbourhood,” MEA spokesperson Randhir Jaiswal said during a media briefing in New Delhi earlier this month.
He noted that requests for fuel supply are being assessed while keeping India’s domestic requirements and refining capacity in mind.
