Sri Lanka Hikes Fuel Prices Sharply for Second Time in Two Weeks Amid Supply Concerns

Colombo. Fuel prices in Sri Lanka have been steeply increased again. Following the second price hike within two weeks, the prices of petrol and diesel have climbed significantly.

This has added further pressure on the daily lives of the general public. Under the new rates, the price of petrol has reached 398 Sri Lankan Rupees per liter. Previously, it was 317 Rupees. Similarly, the price of diesel, widely used in public transport, has increased by 79 Rupees to reach 382 Rupees.

The price hike signals that not only transportation costs but also the prices of goods and services in the market will become more expensive. According to an official at the state-owned Ceylon Petroleum Corporation, this move is expected to reduce fuel consumption by 15 to 20 percent. However, in practice, the price increase is more likely to raise public expenditure and add to the economic burden.

President Anura Kumara Dissanayake has warned that the energy supply could be affected due to the potential escalation of conflict in the Middle East and has urged the country to be prepared for it. Instability in international oil supply is particularly anticipated due to the attacks carried out by the US and Israel on Iran.