Sri Lanka to tighten QR fuel system

The Sri Lankan government plans to enforce the QR fuel distribution system more strictly in the future to reduce fuel consumption and lessen the impact on the economy.

Speaking at a media briefing today (June 1), Minister of Energy Anura Karunathilaka said the country is facing a growing need to significantly reduce fuel usage as the current crisis continues.

The minister noted that the QR system and fuel quota system have already helped achieve a considerable reduction in fuel consumption. However, he said the reduction has not yet reached the level required by the country.

He pointed out that rising fuel prices in the global market have led to a sharp increase in foreign exchange spending on fuel imports. According to the minister, Sri Lanka spent USD 186 million on fuel imports in January and USD 97 million in February, but the cost had risen to USD 524 million by May.

Minister Karunathilaka said the increasing outflow of foreign exchange for fuel imports is becoming difficult to sustain and warned that failure to reduce fuel consumption could contribute to higher fuel prices in the future and create wider economic challenges.

He further stated that the government believes reducing fuel consumption is necessary to limit the amount of foreign exchange leaving the country and to reduce pressure on the economy.

The minister said that the Ceylon Petroleum Corporation, together with the Ministry of Digital Economy, is expected to take the necessary steps in the coming period to implement the QR fuel system more strictly than at present.

He expressed confidence that stronger enforcement of the system would help reduce fuel consumption further and lessen its economic impact.