Sri Lanka urgently needs to reduce its daily diesel consumption by an additional 500 metric tons due to the impact of ongoing unrest in the Middle East and rising global fuel prices, although the government has not yet finalized specific measures to achieve this target.
According to reports quoting Minister of Power and Energy Aruna Karunathilake, Sri Lanka, like many countries, is currently facing increasing economic pressure resulting from higher fuel prices in the international market.
The Minister stated that following the regularization of fuel distribution through the QR code system, the country’s average daily diesel consumption has already declined to around 4,200 metric tons.
However, he pointed out that consumption must be reduced further by approximately 500 metric tons in order to ease pressure on foreign exchange reserves and reduce import costs.
Despite the urgency of the situation, the Minister noted that authorities have not yet reached a decision on concrete measures required to achieve this reduction.
The report further noted that escalating crude oil prices driven by conflict in the Middle East have significantly increased Sri Lanka’s fuel import costs.
As a result, the country’s monthly fuel import expenditure has now reportedly exceeded US$500 million, placing additional pressure on foreign exchange reserves and broader economic stability.
Authorities continue to monitor global energy market developments as concerns grow over the impact of prolonged geopolitical instability on Sri Lanka’s economy.
