Sri Lanka Fuel Crisis: Private Firms Restrict Supply, Demand Price Revision Amidst Global Price Surge

Private fuel companies in Sri Lanka, including LIOC, Sinopec, and RM Parks, have significantly restricted the supply of diesel and petrol to their stations, citing substantial losses. These companies report incurring losses of approximately LKR 150-170 per litre of diesel due to escalating global oil prices and increased shipping costs. The supply limitations have resulted in a widespread diesel shortage, placing greater pressure on the state-owned Ceylon Petroleum Corporation (CPC) to meet demand. The private firms are urging the government to allow price revisions based on landing costs and reinstate a cost-reflective pricing mechanism. The Energy Minister has acknowledged the situation, stating the government is reviewing the companies' request.