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Sri Lanka Hikes Fuel Prices 25% Amid Middle East Crisis, 2nd Jump in 2 Weeks

Sri Lanka has sharply increased fuel prices by up to 25%, marking the second such hike in two weeks as it grapples with the global energy market impact of the Middle East conflict. The nation, which depends entirely on fuel imports, is facing rising costs and supply uncertainties, with diesel seeing a steep rise of Rs 79 per litre. The hikes are expected to pressure transport costs and inflation, affecting businesses and households. Meanwhile, India is examining requests from neighbouring countries like Sri Lanka for diesel supplies, balancing its export role with domestic needs.

Key Points: Sri Lanka Fuel Prices Soar 25% as Middle East Crisis Hits Imports

  • 25% fuel price hike in Sri Lanka
  • Second increase in just two weeks
  • Driven by Middle East conflict and import costs
  • Diesel up by Rs 79 per litre
  • India assessing fuel supply requests from neighbours
2 min read

Sri Lanka hikes fuel prices by up to 25 pc amid Middle East crisis; 2nd increase in 2 weeks

Sri Lanka raises fuel prices up to 25%, the second hike in two weeks, due to Middle East conflict impacting global energy markets and import costs.

"India is a major exporter of refined petroleum products, especially to our neighbourhood, - Randhir Jaiswal"

New Delhi, March 22

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.

- IANS

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Reader Comments

S
Sarah B
A 25% hike is massive! This shows how vulnerable smaller economies are to global shocks. Hope the Indian government's assessment is swift and positive. Regional stability matters.
A
Aditya G
While helping neighbours is good, our own domestic needs must come first. Petrol prices are already high here. The MEA spokesperson is right to be cautious. Let's secure our energy needs before making commitments.
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Priya S
This is a wake-up call for all of South Asia. We need to reduce dependency on imported fossil fuels. Solar, wind... we must invest more in renewables. Sri Lanka's situation could be ours tomorrow.
M
Michael C
The article mentions they source from Singapore and Malaysia. Couldn't India become their primary supplier? It would be good for our refineries and build stronger economic ties. A win-win if managed well.
K
Kavya N
Feel so bad for the common people there. Public transport costs will skyrocket. Hope our government finds a way to help without affecting our own citizens. Neighbourhood First should mean something.

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