Sri Lanka's Fuel Price Surge: A Strategic Move Amid Global Flare-ups

Retail fuel prices in Sri Lanka have surged by over 8% to deter hoarding amid soaring global oil costs, as tensions in West Asia escalate. Prices increased by LKR 22 per litre as global crude hits $100 per barrel, sparking long queues and concerns over fuel supply stability.

Sri Lanka has raised retail fuel prices by over 8% from Monday midnight, aiming to prevent hoarding and panic-buying amid escalating global crude oil costs, officials announced on Tuesday.

This price adjustment follows a spike in global crude prices, which surpassed USD 100 per barrel for the first time in four years, influenced by rising tensions in West Asia. The state-run Ceylon Petroleum Corporation (CPC) reported that prices for petrol and diesel increased by LKR 22 per litre.

The decision is targeted at managing fuel consumption as increased usage was noted due to fears over supply disruptions amidst heightened hostilities in the Middle East. Despite long queues since February 28, CPC assures that fuel stocks are adequate to last until the end of April.

(With inputs from agencies.)