ECONOMYNEXT — For each one-dollar improve in world oil value, the associated fee at native pumps should rise by roughly 2 rupees, Sri Lanka’s President Anura Dissanayake instructed parliament, noting that value volatility has outpaced projections.
Sri Lanka’s gasoline costs face extreme upward strain from spiking world oil charges and surging provider premiums triggered by the battle, Dissanayake mentioned.
He warned of a double blow as world benchmarks rise alongside tender prices, with suppliers demanding greater safety ensures for regional shipments.
Between March 2 and 18, he mentioned that, costs 95 Octane Petrol had Elevated by 65 %, surging from 153 {dollars} to 252 {dollars} a barrel, Normal Petrol had risen by 55 % in the identical two-week window whereas Auto Diesel jumped 74 %, transferring from 114 to 195 {dollars}, and Crude Oil Elevated by 40 %, climbing from 81 to 114 {dollars} a barrel.
Past base prices, Sri Lanka can be battling a surge in world premiums, he mentioned.
Traditionally, long-term tenders had been awarded at a premium of round 2.50 {dollars} over the Singapore flat charge.
Pushed by conflict-induced competitors for restricted provides, these premiums have skyrocketed. “The premium that was once 2.5 {dollars} is now going for 40 {dollars}.”
Dissanayake knowledgeable the Home that some charges have hit 45 {dollars} as suppliers demand large safety ensures.
The president famous that state-level stockpiling has made it tough for smaller economies to barter favorable phrases.
He mentioned the robust US greenback and rising transport insurance coverage prices are straight impacting livelihoods.
Addressing calls to chop taxes for client aid, Dissanayake mentioned such strikes would primarily profit high-volume customers.
“Gasoline costs ought to go to the market value, however we should give a subsidy to the focused group.”
The federal government is presently weighing two intervention paths he mentioned: a focused subsidy for susceptible teams or broader aid for all residents. Dissanayake mentioned a closing determination on the subsidy construction and subsequent value changes should be resolved rapidly. (Colombo/Mar20/2026)
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