News Forum - Sri Lanka suspends sale of petrol to public for next 2 weeks

[Thaiger]

The supply of petrol for cars in Sri Lanka has been suspended due to the country’s greatest economic crisis in decades. Only buses, trains, ambulances, and transport needed to deliver food will be permitted to refuel over the next 2 weeks. Authorities revealed that only 9,000 tonnes of diesel and 6,000 tonnes of gasoline are available to support the nation’s critical services, and buying petrol and diesel for private cars is prohibited until July 10. Authorities have ordered 22 million people to work from home, and schools in urban areas have closed for the time being. Nathan Piper, head of […]

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[Dmitrii]

Why have they totally stopped gas sales to public if they could just gradually increase the gas price and limit the demand this way?

Do these guys know even the very basics of the economy theory?

[Guest1]

Can't they buy from the Indian companies, who buying Russian oil with 30-40% discount , distilling Petrol and Diesel out of it and selling it then to even Europe, GB, USA?

[EdwardV]

1 hour ago, Dmitrii said:

Why have they totally stopped gas sales to public if they could just gradually increase the gas price and limit the demand this way?

That works if you have gas to sell, they don’t. The problem is Sri Lanka lacks the foreign reserves in which to buy gas. Their economy depends on tourism, sale of textiles and a few agricultural products. Tourism is by far their biggest portion and it never recovered from the pandemic. Unless they can restart their economy, and I don’t see how, they are screwed. Bail outs and loans to date have done nothing but buy a little more time. Sadly with the end of globalization and coming world recession. There are going to be a lot of countries in the same boat. 

[Cqman]

6 hours ago, Dmitrii said:

Why have they totally stopped gas sales to public if they could just gradually increase the gas price and limit the demand this way?

Do these guys know even the very basics of the economy theory?

Because if the price of gas spikes, the price of food and other basic necessities will follow.

Edited June 28, 2022 by Cqman

[Vigo]

10 hours ago, Dmitrii said:

Why have they totally stopped gas sales to public if they could just gradually increase the gas price and limit the demand this way?

Do these guys know even the very basics of the economy theory?

That is not fair. Sri Lanka is a poor country and if only the rich can afford petrol there will be a  civil insurrection. Using  cost to limit use hits those who can least afford it.  What has been done before in your preferred capitalist system is rationing.

 

[HiuMak]

Now you have fresh clean air for the next 2 weeks. Happy days

[JJJ]

14 hours ago, Dmitrii said:

Why have they totally stopped gas sales to public if they could just gradually increase the gas price and limit the demand this way?

Do these guys know even the very basics of the economy theory?

As Ronald Regan said (or something like it), “the most terrifying words in the English language are: I’m from the government and I’m here to help”.