Sri Lanka Fuel Distributors Urge President Dissanayake to Step In as Lanka IOC and Sinopec Slash Diesel Supplies

Fuel distributors in Sri Lanka have called on President Anura Kumara Dissanayake to intervene urgently after two major fuel suppliers — Lanka IOC and Sinopec — significantly reduced their diesel deliveries, raising fears of a supply crunch across the island.

Distributors Sound the Alarm

Industry representatives have expressed serious concern over the cutback in diesel deliveries by Lanka IOC, the Sri Lankan subsidiary of Indian Oil Corporation, and Chinese energy firm Sinopec. The reductions, distributors warn, are already disrupting the fuel supply chain and could have far-reaching consequences for transport, agriculture, and industry if left unaddressed.

The fuel distribution sector has formally appealed to the President, urging his administration to step in and resolve the standoff before the situation escalates into a broader supply crisis.

Impact on the Ground

Diesel remains a critical fuel for Sri Lanka's economy, powering goods vehicles, buses, fishing boats, generators, and agricultural machinery. Any sustained reduction in supply is likely to ripple through multiple sectors, potentially driving up the cost of transport and food while hampering daily livelihoods.

• Transport operators depend heavily on diesel for intercity and goods haulage.
• Fishing communities rely on diesel-powered vessels for their daily catch.
• Small and medium enterprises use diesel generators as backup power sources.
• Agricultural machinery, including tractors and irrigation pumps, run largely on diesel.

Presidential Intervention Sought

Distributors argue that the issue requires direct intervention at the highest levels of government, given the strategic importance of fuel supply to national stability. They have stressed that the matter goes beyond a simple commercial dispute between suppliers and distributors, calling it a matter of public interest that demands swift executive action.

Fuel distributors have made clear that without urgent government involvement, the reduced deliveries from Lanka IOC and Sinopec could trigger shortages that would be felt acutely by ordinary Sri Lankans.

It remains unclear at this stage what specific factors prompted Lanka IOC and Sinopec to curtail their diesel deliveries. Observers are watching closely to see whether the Dissanayake administration will engage with the two companies to restore normal supply levels and safeguard fuel availability across the country.

The government has yet to issue a formal public response to the distributors' appeal.