Sri Lanka’s Deputy Finance Minister Anil Jayantha has called on citizens to reduce their fuel usage as the rising costs of oil imports continue to exert pressure on the depreciation of the rupee, despite the implementation of fuel rationing measures.
Since the escalation of tensions in the Middle East began on February 28, the country has increased fuel prices four times, totaling an approximate rise of 40 percent. Additionally, a fuel quota system has been reintroduced utilizing a QR code method, reminiscent of the system used during the nation’s economic crisis in 2022.
During a press conference on Saturday, Jayantha explained that the price hikes necessitate higher dollar expenditures, particularly as the volume of imports has increased initially. “Although the volume of fuel imports is gradually returning to normal, it is important for citizens to consider economizing their personal fuel use for the benefit of the country,” he stated.
He emphasized that even with volumes stabilizing, the costs remain elevated. “The most effective way to address this situation is for individuals to consciously reduce their consumption. If necessary, the government will also explore additional measures,” he noted.
Jayantha further indicated that if fuel consumption could be decreased below normal levels, it would help manage the fuel expenditure within the expected foreign exchange limits. He revealed that Sri Lanka’s state-owned fuel retailer has already incurred $1 billion in fuel imports during the first four months of this year, in contrast to the $1.5 billion spent throughout the entire year of 2022.
