Recent fuel queues across Sri Lanka have been largely triggered by private fuel companies scaling back supplies to the domestic market following a sharp rise in global petroleum prices, Energy Minister Anura Karunathilake informed Parliament. Private distributors have notified the government of their inability to sell fuel at prevailing local prices due to higher import costs, placing an increased distribution burden on the state-run Ceylon Petroleum Corporation.
Addressing lawmakers, Karunathilake explained that international diesel prices have experienced steep increases in recent months, driven significantly by geopolitical tensions in the Middle East. To counterbalance the supply contractions by private firms, the Ceylon Petroleum Corporation has increased the volume of fuel released to the market relative to February levels. Ceylon Petroleum Corporation Chairman D.J. Rajakaruna previously confirmed that isolated shortages were linked directly to private supply limitations rather than broader distribution or transportation failures within the corporation.
While statutory agreements prevent the government from mandating specific supply quotas to individual filling stations, authorities hold the legal power to enforce minimum stock holding requirements within Sri Lanka. In response to compliance gaps, the Energy Ministry Secretary has formally issued directives to private operators failing to meet these mandatory reserve thresholds, ordering immediate measures to avert localized shortfalls. The supply imbalance has been further intensified by commercial terms; unlike private vendors who operate without credit, the Ceylon Petroleum Corporation provides dealers with a three-day credit facility, steering heightened dealer demand toward state supplies.
Key Developments
- Energy Minister Anura Karunathilake confirmed private fuel distributors restricted market supplies due to rising international prices linked to the Middle East situation.
- The Ceylon Petroleum Corporation increased market fuel releases compared to February to offset private supply cuts.
- The Energy Ministry Secretary issued formal instructions to private firms failing to maintain mandatory minimum domestic fuel reserves.
- Credit disparities between suppliers have driven elevated dealer demand toward the Ceylon Petroleum Corporation’s three-day credit facilities.
- Authorities expect distribution pressures to ease by Wednesday or Thursday as state operations absorb the market deficit.
Karunathilake noted that market conditions are projected to ease to some extent by Wednesday or Thursday as the Ceylon Petroleum Corporation continues absorbing the additional supply load. Meanwhile, the Ceylon Petroleum Private Tanker Owners Association has called on motorists to refrain from panic buying, affirming that there is no nationwide fuel shortage or disruption to general distribution networks.