FINANCIAL CHRONICLE–The Sri Lankan government anticipates that fuel queues will dissipate starting Tuesday (03), following measures to prevent fuel hoarding and ensure an adequate supply, according to officials.
Fuel queues re-emerged across Sri Lanka due to panic buying triggered by an artificial demand after a joint bombing of Iran by the U.S. and Israel. “We have sufficient fuel stocks for one month, and there are no supply issues,” stated Cabinet Spokesman and Media & Health Minister Nalinda Herath during a special media briefing in Colombo.
“We are not planning to implement a QR code to restrict consumption because our supply is adequate,” Herath added.
Following the attack, global Brent crude prices saw a surge of over 7%, surpassing the psychological barrier of US$90.
In response to the attack on Iran, which retaliated on Saturday (28), the state-owned Ceylon Petroleum Corporation (CPC) announced a fuel price increase. This price adjustment was based on a predetermined fuel price formula and unrelated to the recent Middle East tensions.
Any disruption in the Strait of Hormuz, a vital chokepoint through which 20 percent of global oil is transported, could immediately threaten shipments, potentially forcing Sri Lanka’s refinery to cease operations within approximately a month once current reserves are depleted.
CPC Chairman D.J. Rajakaruna noted that Sri Lanka has diversified its sources for refined products such as petrol and diesel, increasingly sourcing from India, Singapore, Malaysia, and South Korea. However, the state-run Sapugaskanda refinery continues to rely heavily on Middle Eastern crude oil for domestic production.
Rajakaruna also mentioned that the country currently possesses enough crude oil to last more than one month. (Colombo/March 02/2026)
