FINANCIAL CHRONICLE – The Sri Lankan government has justified its decision to significantly raise fuel prices, citing it as a necessary measure to combat an impending supply shortage resulting from the conflict in West Asia, according to Minister Nalinda Jayatissa.
Initially, the government aimed to maintain fuel prices by utilizing buffer stocks. However, escalating global market prices for Brent crude and refined petroleum, combined with a spike in domestic demand due to fears of shortages, necessitated the price adjustment, Jayatissa explained.
“This is not unique to Sri Lanka; many countries have increased fuel prices and are striving to reduce energy consumption,” Jayatissa stated. He highlighted the fluctuation in global crude oil prices, noting that prices, which were at $72 per barrel on February 27, had surged to $119 by March 9 before easing slightly.
As of 7:46 AM on Wednesday, Brent crude had decreased by 0.4% to $87.45 per barrel, while U.S. crude (WTI) saw a 0.3% increase to $83.67 per barrel. Jayatissa noted that refined fuel prices experienced even steeper hikes, with Auto and Super Diesel prices nearly doubling, and petrol prices rising between 75% and 79%.
In response to questions from reporters regarding the price hikes despite pre-conflict shipment orders, Jayatissa clarified, “We calculate the price based on the average prevailing five days before discharge at the port, not when the ship is loaded.”
He emphasized that new shipments are arriving at these considerably higher costs. (Colombo/Mar11/2026)
