Sri Lankan govt to introduce fuel rationing scheme next month

The Sri Lankan government announced plans to introduce a fuel rationing scheme in the crisis-hit nation from next month. Energy Minister Kanchana Wijesekera said consumers will be given a guaranteed weekly quota at filling stations.

The small island nation is facing the biggest economic crisis in its independent history. It has been seeing long lines for fuel refilling since mid-February.

Due to pressure coming on the diesel supplies for thermal power generation, the country has been experiencing 10-hour power cuts due to shortages of diesel and furnace oil for power generation.

Minister Wijesekera tweeted the government has no choice but to register consumers at filling stations and give them a guaranteed weekly quota until we are able to strengthen the financial situation, restore 24-hour power supply, and a steady supply of fuel. He added that the system is expected to be implemented by the first week of July.

Due to the shortage of fuel, many have been stockpiling and hoarding diesel. The government hopes to bring back normalcy and help in addressing the crisis.

In another tweet, the senior minister said the Ceylon Petroleum Corporation imports fuel to manage for a week due to the financial restrictions in place. "But, customers are stockpiling fuel for a month or more for their machinery and generators".

The shortage in gas supply has led to higher demand for electricity and kerosene. He added that a 24-hour power supply costs an additional USD 100 million monthly for diesel, furnace oil, and naptha.

"The monthly fuel bill that was USD 200 million four months ago, now stands at USD 550 million," said the official.

Sri Lanka is currently dependent on India for fuel. The last shipment due under the Indian Line of Credit is arriving in Sri Lanka on June 16 and June 22.