📈 Fuel Prices Surge Near 50% Since February as Global Oil Shock Hits Sri Lanka

Sri Lanka has implemented its fifth fuel price hike since the Middle East conflict escalated, driven by soaring global oil prices and increased import volumes. Based on provisional Central Bank data, the sharp rise in energy costs is significantly widening the national trade deficit. • New Monthly Pricing (Effective 31 May): Petrol Octane 92: Up Rs. 24 to Rs. 434/litre (+48.1% since Feb 28) Auto Diesel: Up Rs. 15 to Rs. 407/litre (+45% since Feb 28) Petrol Octane 95: Up Rs. 25 to Rs. 495/litre (+46% since Feb 28) Super Diesel: Up Rs. 20 to Rs. 478/litre (+45.3% since Feb 28) Kerosene: Up Rs. 20 to Rs. 285/litre (+57% since Feb 28) • Macroeconomic Impact & Trade Balance: Fuel import expenditure skyrocketed by 150% YoY to US$ 886 Mn in April 2026 alone. The April fuel bill accounted for more than half of the total petroleum import expenditure recorded in the entire year of 2025. Cumulative fuel spending in the first four months of 2026 has already reached 53% of 2025's total fuel bill. Driven by the energy sector shock, total imports rose 45.7% YoY to US$ 2.46 Bn in April, expanding the merchandise trade deficit to US$ 1.38 Bn. The continuous upward revisions highlight Sri Lanka's high vulnerability to global energy fluctuations, worsened by limited domestic storage capacity which prevents building inventories during low-price periods.