Sri Lanka hikes fuel prices by 8% to curb panic buying amid rising global oil prices

Sri Lanka has increased its retail fuel prices by over 8 per cent from midnight Monday as part of efforts to curb hoarding and panic buying. The move comes amid rising global crude oil prices, which recently crossed USD 100 per barrel for the first time in four years, driven by escalating tensions in West Asia.

In response to the surge in crude oil prices, the state-run Ceylon Petroleum Corporation (CPC) raised the prices of petrol and diesel by LKR 22 (Rs 6.54)  per litre, officials confirmed on Tuesday.

Aiming to curb panic buying

The price revision is aimed at tackling the surge in fuel consumption that has been triggered by fears of supply disruptions. "We have noticed heavy consumption since the news of the Middle East war situation," a CPC official said.

Long queues have been spotted outside fuel stations across Sri Lanka since February 28, after hostilities in the Middle East intensified following US-Iran strikes on Iran. The geopolitical situation has raised concerns over the stability of global oil supplies.

Sufficient fuel stocks for now

Despite the panic buying, the CPC reassured the public that Sri Lanka currently has sufficient fuel reserves to last until the end of April. The government has also emphasised that fuel availability is not a concern in the short term, and the price increase is a preventive measure to manage rising demand.

Austerity measures in Pakistan and Bangladesh

Meanwhile, the Pakistani government has introduced austerity measures to reduce fuel consumption and government spending amid rising fuel prices caused by conflict in neighbouring regions. Prime Minister Shehbaz Sharif said these steps aim to stabilise the economy during uncertain fuel supply and cost conditions.

Government departments will face a 50 per cent cut in fuel allowances for two months. Additionally, 60 per cent of official vehicles, excluding buses and ambulances, will be taken off the roads, he said.

On the other hand, Bangladesh has also ordered all public and private universities to close from Monday, bringing forward Eid al-Fitr holidays as part of a nationwide effort to conserve electricity and fuel, according to Reuters.

Officials said the decision will reduce energy consumption across campuses while also easing traffic congestion, which contributes to fuel wastage.

University campuses consume large volumes of electricity to operate residential halls, classrooms, laboratories and air conditioning systems. Authorities believe the temporary shutdown will ease pressure on the country’s already strained power system.