Sri Lanka is bracing for yet another financial squeeze as global oil prices rise sharply, driven by winter demand and tightening sanctions on Russian fuel shipments. With sanctions hitting 117 vessels and supply chains tightening, the CPC now faces pressure to adjust local fuel prices once again.
Sri Lanka is preparing for the impact of rising global fuel prices, with the Ceylon Petroleum Corporation (CPC) currently assessing the situation ahead of its next fuel price revision. The spike in international oil prices has been attributed to several key factors that have intensified over the first three weeks of November, according to the country’s top petroleum regulator.
The CPC’s regular review of refined petroleum products has highlighted a clear upward trend in global markets. The surge in demand for fuel during the winter season has pushed consumption higher worldwide. At the same time, tightening sanctions against Russia as a major oil producing country have further constrained supply. An official, who wished to remain anonymous, said that sanctions specifically targeting 117 vessels transporting Russian fuel had contributed additional upward pressure on prices.
While global oil prices experienced a slight dip around November 22 following news of a potential Russia-Ukraine peace deal, the overall market remains volatile. The easing of supply fears was temporary, and the CPC continues to monitor how international movements may affect domestic costs.
Sri Lanka typically imports two or three shipments of petroleum products each month. The rising global prices mean that the CPC must carefully consider its next price revision for the local market. The corporation follows a formula designed to keep local energy pricing cost reflective, which makes global fluctuations directly relevant to domestic prices.
As the CPC completes its latest assessment, Sri Lankan consumers may once again feel the impact of global fuel market instability, highlighting the country’s vulnerability to international economic shifts and ongoing geopolitical tensions.
