President to Revise Fuel Prices and Taxes Amid Middle East Crisis 📈

The Government of Sri Lanka has announced urgent measures to stabilize the energy sector as the Middle East conflict disrupts global supply chains and increases costs. • Overall Impact: National fuel prices have already seen an average increase of 8% due to global crude rising from $81 to$ 114. Long-term tender premiums have surged from $2.50 to$ 40. • Pricing & Private Sector: A price revision is expected "very soon" to prevent supply shortages. Private suppliers, who hold 43% of the domestic market, face potential losses of $ 55 million per shipment and may halt imports without market-aligned pricing. • Taxation & Revenue: The government earns roughly Rs. 20 billion monthly from fuel taxes. While tax relief is under review, the state is shifting toward targeted subsidies over broad reductions to maintain revenue and meet policy goals. • Energy Supply & Procurement: • Crude Oil: Significant strain exists; a 90,000-ton shipment is delayed, and no proposals were received for April supply. • Refined Products: Supplies of petrol, diesel, and aviation fuel remain stable through April via Singapore and India. • Diversification: G2G talks are underway, including with Russia, to secure long-term supplies. • Exporters: Private licenses have been issued to ensure the export sector receives uninterrupted fuel. • LP Gas: Supply remains stable for March and April. Note: Based on parliamentary statements regarding immediate energy planning.