Fuel price crisis: Govt weighs options to reduce daily diesel consumption by 500 tonnes

No specific measure has been agreed upon yet  

By Kelum Bandara  

In dealing with the fallout of the Middle East crisis, the government urgently needs to reduce diesel consumption by another 500 tonnes a day, but no specific measure has been agreed upon yet, a Minister said yesterday.  

Sri Lanka, like many other countries, is grappling with the rising fuel prices.  

Energy Minister Aruna Karunatilake told Daily Mirror that daily diesel consumption had averaged at around 4200 tonnes after the distribution was rationalised under a QR code system. He said that it should be reduced by at least another 500 tonnes to save on foreign exchange.  

However, he said that the government had not firmed up any specific action.  Following the surge of global oil prices as a result of the Middle East war, Sri Lanka’s monthly fuel import bill has exceeded US $ 500 million, adding pressure on the country’s reserves.  

The government has already spent more than US $ 2 billion for vehicle imports since February last year. The increased demand for US dollars has also resulted in the weakening of the rupee value. The International Monetary Fund (IMF), however, has stressed the need for exchange rate flexibility. It also advised against any import restriction at this hour.   

Earlier, Ceylon Petroleum Corporation (CPC) Chairman D.J. Rajakaruna said that supplies had been secured from the world market.  Meanwhile, a top official said that there are various options being weighed by the government to save fuel at this time. Work from home facility for public servants is also an option under consideration.