We introduced QR based fuel rationing again "as a precaution after authorities observed fuel stockpiling, panic…

We introduced QR based fuel rationing again "as a precaution after authorities observed fuel stockpiling, panic buying, and long queues at filling stations." - The SL 🇱🇰 Government

How much did demand actually increase?

⭕ According to the CPC Chairman, it is not 2x or 3x. It is just a 21% increase.

⭕ Sri Lanka increased fuel prices by only 8% following the crisis, and current prices remain about 35% (around Rs.150) below the all time highs reported in 2022.

⭕ The decision to introduce fuel rationing instead of using price adjustments to manage the increase in demand will send the country into unnecessary chaos and disrupt the entire economy and everyday life.

⭕ From small businesses to three wheel drivers, doctors, professionals and ordinary citizens, the impact will spread across all sectors (sp. tourism, agriculture, manufacturing etc), turning what was essentially a manageable demand increase into a much wider economic problem.

⭕ Worst of all, this will not reduce demand in the short term. The system creates a necessity for every vehicle to visit a fuel station at least once, while many people may begin keeping fuel buffers in their vehicles just in case. This could increase overall demand and lead to longer queues in the short term. It also makes the country more prone to future crises, as people may rush to hoard fuel at the slightest sign of any disruption.

⭕The NPP government has so far been miles ahead of previous governments when it comes to consequential decisions. However, given this set of facts, this is one of the worst economic and political decisions taken by the NPP government, with the potential to undo much of the good they have done and potentially send the country into an economic depression.

#SriLanka #QRFuel