ECONOMYNEXT–Sri Lanka’s government expects fuel queues to disappear from Tuesday (03) as authorities have taken action to curb fuel hoarding and ensured adequate supply, officials said.
Fuel queues returned to Sri Lanka as panic buying by motorists across the country led to artificial demand after the U.S. and Israel jointly bombed Iran.
“We have enough fuel stocks for one month and there are no supply issues,” Cabinet Spokesman and Media & Health Minister Nalinda Herath told reporters at a special media briefing in Colombo.
“We are not going to implement a QR code to restrict consumption because we have enough supply.”
Within hours of the attack, global Brent crude prices surged by over 7%, crossing the psychological US$90 barrier.
After the attack on Iran, which also retaliated on Saturday (28), the state-owned Ceylon Petroleum Corporation (CPC) announced a price hike. The price hike was based on a predetermined fuel price formula and not related to the latest Middle East tension.
Any disruption to the Strait of Hormuz, a critical chokepoint through which 20 percent of global oil is shipped, would immediately jeopardize shipments, potentially forcing Sri Lanka’s refinery to halt operations within approximately a month once existing reserves are exhausted.
CPC chairman D.J. Rajakaruna said Sri Lanka has diversified its sources for refined products like petrol and diesel, increasingly relying on India, Singapore, Malaysia, and South Korea.
However, the state-run Sapugaskanda refinery remains heavily dependent on Middle Eastern crude oil to maintain domestic production.
Rajakaruna said the country already has crude for more than one month. (Colombo/March 02/2026)