India ships 38,000 MT of fuel to Sri Lanka amid West Asia crisis and local panic

With the West Asia conflict causing widespread disruptions to global oil and gas supply chains, India has stepped in under its Neighbourhood First policy to rescue Sri Lanka from an emerging energy crisis. The country has supplied 38,000 metric tonnes of fuel to the island nation to ease the ongoing fuel crisis.

Taking to X, the President of Sri Lanka, Anura Kumara Dissanayake confirmed the same and thanked Dr. S Jaishankar, the External Affairs Minister of India, for his close coordination.

"Spoke with PM Narendra Modi a few days ago about the fuel supply disruptions Sri Lanka is facing due to the Middle East conflict. Grateful for India's swift support. 38,000 MT of fuel arrived in Colombo yesterday. My thanks also to EAM Dr S. Jaishankar for his close coordination," he wrote.

Behind the emergency shipment

Of the 38,000 MT delivered on March 28, 20,000 MT is diesel and 18,000 MT is petrol. The emergency arose after Lanka IOC, which had secured fuel supplies for March from West Asia and Singapore, was left without delivery after contracted suppliers failed, citing vessel unavailability and supply disruptions linked to the ongoing West Asian conflict.

A statement from the Indian High Commission in Colombo confirmed that rescue supplies were subsequently requested from Indian Oil Corporation. "Government of India, through Lanka IOC, has extended support to Sri Lanka for maintaining continuity of fuel supply," the statement read.

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The shipment followed a telephone conversation between Prime Minister Narendra Modi and President Dissanayake on March 24, as well as a separate call between External Affairs Minister S. Jaishankar and Sri Lankan Foreign Minister Vijitha Herath.

"We reviewed progress on key initiatives aimed at strengthening India-Sri Lanka energy cooperation and enhancing regional security. As close and trusted partners, we reaffirmed our commitment to work closely together in addressing shared challenges," Modi wrote on X after his conversation with the Sri Lankan president.

Panic buying hits Indian pumps

The supply from India has reached Sri Lanka amid anxiety among Indian consumers about a possible fuel shortage. Earlier, petrol stations were overwhelmed by panic-buying and reports of LPG shortages. There were also several reports of cylinder theft due to the panic. However, the Indian government has maintained that domestic stocks are adequate and that India is well-positioned to manage the impact of the West Asia conflict.