Business · Sri Lanka Bureau
Fuel shortages deepen as private suppliers curtail distribution
Long queues have resurfaced at petrol stations across Sri Lanka as foreign fuel suppliers reduce supplies, citing unsustainable losses under current pricing controls. The Ceylon Petroleum Corporation's price ceiling has become a flashpoint in the ongoing energy crisis.
LSN Sri Lanka ·
Motorists are facing extended waiting times at filling stations nationwide as fuel availability tightens once again, marking a return to supply constraints that have plagued the island periodically in recent months. The disruption comes as private companies involved in fuel trading have begun restricting deliveries, claiming that operational losses have become untenable under the existing regulatory framework.
Foreign fuel suppliers have attributed the cutback to a widening gap between their procurement costs and the maximum prices set by the Ceylon Petroleum Corporation. According to industry sources, the price ceiling imposed by the state enterprise does not adequately reflect international market rates or the expenses incurred in transporting and distributing fuel domestically.
The supply squeeze has reignited concerns about energy security and the sustainability of Sri Lanka's fuel distribution model. The situation underscores the tension between government price-control measures aimed at protecting consumers and the economic viability of commercial operators in the sector.
Authorities have not yet announced measures to address the supply gap. The development is likely to intensify pressure on policymakers to negotiate a resolution between price controls and supplier profitability to ensure stable fuel availability across the country.