Amid rising tensions in the Middle East and fears of a fuel crisis, Sri Lanka considers importing petroleum from Nigeria while avoiding Russian oil due to global sanctions.
As global fuel markets reel from mounting instability in the Middle East, Sri Lanka is taking pre-emptive steps to secure alternative oil sources, turning to Nigeria for potential imports. This strategic pivot comes amid fears that the Israel-Iran conflict and U.S. military action could severely disrupt established fuel supply chains across Asia and beyond.
Crude oil prices have already shown upward momentum, with Brent and WTI benchmarks rising by US $1.99 and US $1.91 per barrel respectively by June 20, 2025. The Central Bank of Sri Lanka noted that although investor caution kept the surge moderate, the geopolitical landscape remains volatile especially with Washington’s military strikes deepening the crisis.
In response, Ceylon Petroleum Corporation (CPC) Chairman D.A. Rajakaruna revealed that samples of petroleum products from Nigeria and other potential suppliers have been requested for testing in local labs. This marks the first move in a contingency plan to minimize the nation’s exposure to fuel shortages.
Rajakaruna emphasized that although there is no immediate disruption expected, ripple effects from the global crisis could begin to affect Sri Lanka’s market between August and September. The CPC currently supplies nearly 60% of the country’s fuel, while Sinopec, Lanka IOC, and RM Parks account for the remainder.
Nigeria, a leading African oil producer, presents a viable alternative to traditional Middle Eastern suppliers. Meanwhile, despite Russia offering oil trading arrangements, CPC has opted against it due to the complications posed by international sanctions and political pressures. Rajakaruna noted that while Sri Lanka is open in principle, practical hurdles make Russian imports unfeasible for now.
The shift to Nigeria is part of a broader national strategy to diversify energy sources and insulate the domestic market from external shocks. With global supply lines under threat, this proactive move could shield Sri Lanka from price hikes and shortages in the coming months.
