Sri Lanka’s government is closely reviewing the upcoming fuel price revision due at the end of September amid renewed volatility in global energy prices.
Energy Minister Anura Karunathilaka said the Middle East conflict has pushed global fuel prices higher after a period of lower prices that allowed Sri Lanka to pass some savings on to consumers.
The monthly pricing formula is based on the average import cost incurred during the preceding month. However, the Minister said the government is assessing whether consumers can bear another increase, given that fuel prices are already high.
Meanwhile, several private fuel distributors have reportedly limited diesel supplies, citing heavy financial losses under the current pricing structure.
The government is now examining legal options for a more flexible pricing mechanism, including a system with upper and lower price limits that would allow private distributors to set prices within the approved range.
