Sri Lanka Raises Fuel Prices by 25% Amid War on Iran Fallout - Sarmad

Sri Lanka raised fuel prices by 25% on Sunday, marking the second increase within two weeks, as the country braces for further repercussions of the war on Iran.

The price of regular gasoline rose to 398 rupees ($1.30) per liter, up from 317 rupees previously, while the price of diesel, widely used in public transport, increased by 79 rupees to reach 382 rupees.

Last week, the government approved an 8% increase in fuel prices for consumers and imposed a rationing system to curb consumption.

A Ceylon Petroleum Corporation official stated that “the latest increase aims to reduce fuel consumption by between 15% and 20%.”

The official added, “President Anura Kumara Dissanayake informed them last week of the need to prepare for a prolonged conflict in the Middle East that could affect energy supplies to the island.”

President Dissanayake had ordered the adoption of a four-day workweek starting last Wednesday, urging employers to resume remote work wherever possible.

Sri Lanka imports all its oil needs and also relies on coal for electricity generation, while its refined petroleum products are supplied by Asian countries and crude oil from the Middle East.

The government warned that the continuation of the war could undermine recovery efforts from the 2022 crisis, when the country defaulted on its $46 billion debt before later securing a $2.9 billion bailout package from the International Monetary Fund.