March 23, 2026 | 09:55 am
TEMPO.CO, Jakarta - The government of Sri Lanka has once again increased the price of fuel by 25 percent on Sunday, March 22, 2026. This is the second hike in the last two weeks, as the impact of the Middle East conflict on global energy supply intensifies.
According to CNA report, the price of regular gasoline has risen to 398 Sri Lankan rupees (approximately US$ 1.30) per liter from the previous 317 rupees. Meanwhile, the price of kerosene, which is widely used for public transportation, increased by 79 rupees to 382 rupees per liter.
Earlier last week, the government had raised retail fuel prices by 8 percent and imposed rationing to limit consumption.
Efforts to Control Energy Consumption
This price increase is aimed at reducing domestic fuel usage. An official at the Ceylon Petroleum Corporation said, "We hope to achieve a 15 to 20 percent reduction in fuel consumption with the latest increase."
The official also conveyed that President Anura Kumara Dissanayake had warned the government to prepare for prolonged conflicts in the region that could disrupt the country's energy supply.
As part of energy conservation, the government has also implemented a four-day workweek since last Wednesday. Furthermore, companies are urged to reintroduce remote work if feasible to reduce mobility.
Global Supply Disruptions
Pressure on energy supply has increased after Iran effectively closed the Strait of Hormuz. This route is a crucial passage through which around 20 percent of the world's oil exports normally pass. The closure was in response to the ongoing war involving the United States and Israel, now entering its fourth week.
Sri Lanka is particularly vulnerable to this disruption as it is entirely dependent on energy imports, importing all of its oil and coal needs for power generation. Refined oil products are purchased from Singapore, Malaysia, and South Korea, while crude oil for its refinery, built by Iran, comes from the Middle East.
According to The Hindu report, the government has warned that prolonged conflicts in the region could disrupt Sri Lanka's economic recovery efforts after the 2022 crisis. In that year, Sri Lanka failed to pay off its US$46 billion foreign debt after running out of foreign exchange reserves. Since then, the country obtained a US$2.9 billion bailout from the International Monetary Fund (IMF) to support economic recovery.
Read: Sri Lanka Starts 4-Day Work Week to Conserve Fuel
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