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Fuel Stations Run Dry as Demand Surges Across Sri Lanka

Economist warns the current QR fuel system only monitors consumption and may not prevent a deeper national shortage.

1 min read
The Oil Distributors Association has warned that approximately 836 CPC fuel station owners are now facing a financial crisis.

Fuel stocks have run out at many fuel stations across Sri Lanka as demand surged across the country, according to reports from local journalists. Long queues began forming at filling stations from the morning of July 15 after motorists rushed to obtain fuel under the government’s QR-based fuel distribution system, which was introduced to limit consumption and manage supply.

As large numbers of vehicles arrived to refuel, many stations quickly exhausted their available stocks. Several fuel stations were forced to display notices informing customers that fuel supplies had been depleted. Motorists in multiple areas reported waiting for hours in queues only to be turned away after stations ran out of fuel.

Fuel station owners said the shortages were primarily due to the sudden spike in demand rather than disruptions in supply deliveries. They stated that fuel distribution activities would resume normally once new shipments arrive at the stations. Operators expressed confidence that supplies would be replenished, but acknowledged that the unusually high demand had created temporary shortages in several locations.

The situation has raised fresh concerns about fuel security in the country, which has previously experienced severe shortages during its economic crisis. The government introduced the QR code system as part of its efforts to regulate fuel distribution and prevent excessive consumption by assigning weekly fuel quotas to registered vehicles.

However, Senior Professor Wasantha Athukorala from the Department of Economics at the University of Peradeniya has warned that the QR system currently in operation functions primarily as a monitoring mechanism rather than a true control system. According to him, the system allows authorities to track fuel consumption patterns but does not necessarily prevent shortages if supply constraints emerge.

Athukorala cautioned that if the country faces difficulties in securing adequate fuel or gas supplies in the future, the existing system may not be sufficient to manage the crisis. In such a scenario, he warned, there may be limited mechanisms available to effectively control demand or stabilize distribution.

The economist stressed that the current circumstances highlight the need for responsible action from all stakeholders, including the government, opposition parties and the public. He said cooperation and careful management would be essential if the country is to avoid a repeat of the severe shortages experienced in the past.

Athukorala made these remarks while commenting on the fuel distribution system currently being implemented across the country, emphasizing that monitoring alone will not resolve deeper structural challenges related to energy supply and economic stability.

Sri Lanka Guardian

The Sri Lanka Guardian is an online web portal founded in August 2007 by a group of concerned Sri Lankan citizens including journalists, activists, academics and retired civil servants. We are independent and non-profit. Email: editor@slguardian.org

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