Govt. Flags Inflation Risks as Fuel Quotas Strain Logistics 📈

A government committee has warned of potential price hikes ahead of the Sinhala and Tamil New Year due to insufficient fuel quotas hindering the distribution of goods. • Overall Risk: Current fuel allocations are reportedly inadequate for industrial distribution needs, potentially driving up costs for essential items during the festive season. • Sector Impact: Key sectors highlighted for urgent fuel reviews include supermarkets, wholesale importers, tourism-related services, and hotels. • Agricultural/Fisheries: A new QR-based system for fuel issuance is being implemented for the agriculture and fisheries industries, replacing direct allocations with recommendations from government officials. • Strategic Response: A 5-member team from the Ceylon Petroleum Corporation (CPC) has been appointed to coordinate across ministries to resolve supply bottlenecks. • Context: These measures are part of a broader strategy to manage economic fallout from ongoing Middle East conflicts (US-Israel-Iran).