Sri Lanka’s Fuel Rationing System: A Response to Global Supply Chain Disruptions

Sri Lanka’s Fuel Rationing System: A Response to Global Supply Chain Disruptions.webp

Colombo, March 15 Sri Lanka implemented a fuel rationing system using QR codes on Sunday, in response to a potential crisis situation due to the ongoing conflict in the Middle East.

Cars are allowed 15 liters per week, while buses are allowed 60 liters per week, according to the Ministry of Energy.

The QR-based rationing is being introduced as a measure to address hoarding by consumers, despite the continuous availability of enough fuel for 4 months, the ministry stated.

The rationing comes after the government announced this week that it was hopeful of securing fuel supplies from India and Russia.

Long queues were seen outside fuel retailers due to problems with the operation of the QR code, retailers said.

Earlier last week, Sri Lanka raised fuel prices to curb hoarding, even as long queues were seen at fuel pumps since the war broke out on February 28.

The government had appealed to people to reduce non-essential travel to minimize fuel consumption.

The QR-based rationing proved successful in curbing the problem when supplies ran dry due to a forex shortage during the 2022 economic crisis, making it difficult to pay for the shipments.

An Indian credit line through the Lanka Indian Oil Corporation (LIOC), the company's Sri Lanka operation, helped to ease tensions. In that year, between March and July, over 25 people died due to exhaustion after spending long hours in fuel queues.

Starting February 28, the US and Israel launched a massive joint attack on Iran, which, in turn, has extended to the entire Gulf region. Iranian strikes in Hormuz have affected maritime traffic in the strait, which is crucial for global supply chains for crude and oil.
 
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crude oil fuel prices fuel queues fuel rationing fuel supply hoarding hormuz strait india lanka indian oil corporation lioc maritime traffic middle east conflict qr codes russia sri lanka
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