- Awaits CPC revision or Govt. directive
As global oil markets convulsed with one of the sharpest single-day price jumps on record, Lanka Indian Oil Corporation PLC yesterday (9) made it clear that it will not move on local fuel prices unless the Ceylon Petroleum Corporation or the Government takes the lead.
Brent crude surged by around 25 per cent in a single day, climbing to levels last seen in mid-2022, as tensions involving the US, Israel and Iran rattled global energy markets. The spike followed escalating military action in the Middle East, fuelling fears of supply disruptions across key shipping routes.
Against this volatile backdrop, LIOC Managing Director K. Raghu told The Daily Morning that the company would hold its current prices for now.
“We will not make any changes until the CPC takes an initiative or the Government issues an official directive,” he said, when asked whether LIOC was considering a price revision.
Asked whether discussions were underway with authorities on a possible adjustment, Raghu responded: “There is no such thing as of yet.”
Multiple attempts to contact the CPC for comment proved unsuccessful.
The developments come as former US President Donald Trump, commenting on the escalating crisis, warned that Iran would face “severe consequences” and signalled that Washington would not hesitate to act if its interests were threatened. His remarks added to already heightened market anxiety, with traders reacting sharply to the prospect of a widening regional conflict that could disrupt oil flows.
Despite the global turbulence, Central Bank Governor Dr. Nandalal Weerasinghe recently sought to reassure the public that Sri Lanka is better prepared to withstand external shocks than during the 2022 economic crisis.
Speaking to international media, he said Sri Lanka has rebuilt its financial buffers, with foreign reserves rising from near-zero levels at the height of the crisis to more than US Dollars seven billion at present. He described this as a critical safeguard against rising oil prices and potential supply chain disruptions.
Weerasinghe stressed that the fuel shortages experienced during the previous crisis were primarily due to a severe foreign exchange crunch. In contrast, he noted that current risks stem more from global supply logistics and price volatility rather than a lack of domestic funding capacity.
For now, motorists will not see an immediate revision at the pump. However, with global oil markets on edge and geopolitical tensions far from easing, pressure on local fuel pricing mechanisms could intensify in the days ahead.