The Digester

Sri Lanka and Thailand impose fuel rationing as Middle East war drives up oil costs

Mar 16th 2026

Colombo and Bangkok have rolled out temporary fuel-rationing policies as a spike in oil prices and supply risk from the war in the Middle East strains imports, raises costs and threatens short-term economic pressure.

  • Sri Lanka and Thailand introduced temporary fuel-rationing measures this month after supply worries tied to the Middle East conflict.
  • Rationing applies to both retail motorists and commercial transport to conserve national fuel stocks.
  • Global oil and shipping insurance costs rose after the conflict increased risks to crude exports and tanker routes.
  • Longer queues and tighter supplies are already adding pressure to transport and food prices for consumers.
  • Authorities describe the measures as temporary while they work to secure alternate imports and manage reserves.
  • Economists warn that prolonged disruptions could slow growth and push inflation higher