⛽ Private Operators Restrict Supply, Driving Fuel Shortages in Sri Lanka

Private fuel operators have slashed market releases due to losses under the government’s regulated pricing model, triggering fuel queues in Colombo. • Private Supply Cuts (vs. February): - Lanka IOC: Reduced auto diesel supply by 45%, Euro super diesel by 88%, and petrol Octane 92 by 3%. - Sinopec: Cut diesel supply by 66% and Octane 92 by 30%. • Impact on State Sector: - Ceylon Petroleum Corporation (CPC) supply share surged from 54% to 82% to cover the deficit. - CPC increased market releases for diesel (+28%), super diesel (+44%), Octane 92 (+19%), and Octane 95 (+7%). • Regulatory & Operational Challenges: - State contracts lack legal powers to mandate specific distribution volumes at private filling stations. - Ministry issued notices to enforce minimum stock levels; issue exacerbated by standard Sunday distribution halts extending into Monday. • Outlook: - Energy Ministry expects market pressure to ease by Wednesday or Thursday as CPC absorbs the supply load.