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Tuesday, Mar 17, 2026

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Sri Lanka and Thailand Introduce Fuel Controls as Middle East War Disrupts Oil Supply

Governments move to ration fuel and stabilise prices as rising energy costs and supply disruptions ripple across Asia
Sri Lanka and Thailand have introduced emergency measures to manage fuel supplies and limit price shocks as escalating conflict in the Middle East disrupts global oil markets and threatens energy shipments to Asia.

The war has severely affected oil flows through the Strait of Hormuz, one of the world’s most critical energy routes, sending crude prices soaring and forcing governments across the region to adopt conservation and price-control policies to protect domestic economies.

Sri Lanka has implemented fuel rationing and introduced measures to reduce national energy consumption as supplies tighten.

Authorities have restricted petrol and diesel purchases for motorists and urged businesses and government institutions to cut fuel use.

In addition, the government has moved to shorten the working week for many state institutions to conserve energy and stretch existing fuel reserves.

Long queues have formed at petrol stations across the island as motorists attempt to secure limited fuel supplies, echoing concerns about energy shortages in a country still recovering from a severe financial crisis earlier in the decade.

Officials say the rationing programme aims to ensure that available fuel lasts several weeks while authorities work to secure additional imports.

Thailand has also introduced measures to stabilise fuel availability and shield consumers from rising energy costs.

The government has maintained caps on diesel prices using the national Oil Fuel Fund and has expanded efforts to manage demand while global oil prices remain volatile.

Authorities say the subsidy programme is designed to protect households and businesses from sudden price spikes that could affect transportation costs, inflation and economic activity.

Officials have also explored alternative crude supply sources and policy tools to maintain adequate domestic fuel reserves.

Across Asia, governments are implementing similar strategies to cope with the energy shock, including rationing fuel sales, imposing price caps and encouraging reduced consumption.

The measures highlight the region’s heavy reliance on Middle Eastern energy supplies and the vulnerability of global markets to disruptions in key shipping routes.

Economists warn that prolonged instability in the Gulf could lead to sustained inflationary pressure across energy-dependent economies, affecting industries from manufacturing and transport to agriculture and food production.

For Sri Lanka and Thailand, the immediate priority is maintaining supply stability while protecting households and businesses from the sharp economic impact of surging global energy prices.
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