📈 Diesel Supply Risks Mount Amid Political Profligacy

Concerns are rising over Sri Lanka’s energy security as high-cost diesel is diverted for political rallies despite tightening global supplies and domestic power shortages. • Critical Stock Concerns: Diesel remains the most vulnerable fuel due to the Hormuz blockades affecting middle distillate feedstock. Global prices have hit record highs, with recent Ceypetco stocks costing US$ 268 per barrel. • Priority Sectors: Analysts emphasize that diesel must be reserved for goods transport, power generation, and the export economy (e.g., apparel & textiles). Using diesel-powered buses for non-productive political gatherings is labeled as fiscal profligacy. • Regional Context: Asian crude stocks (excluding China) fell 11% in April. Refining capacity in the region has dropped by 3M barrels per day, with further cuts to 5M expected in May. • Policy Recommendations: Experts urge the government to publish credible stock data, implement strict rationing, and prioritize essential logistics and supply chains to avoid a repeat of the 2022 economic crisis.