From Pump to Plate: Understanding Oil Price Pass-through in Post-2022 Sri Lanka
Oil price fluctuations have historically impacted the cost of goods and services across the world. As the current global markets show an increase in crude oil prices from USD 65 per barrel prior to the start of the war to USD 102 per barrel (a 59% increase) and signal further increases, Sri Lanka finds itself in a similar, or even more volatile, situation than during the oil price hikes of the Russian-Ukrainian War in 2022.
Import Price Shocks of the Hormuz Crisis 2026: How Will This Affect Sri Lanka?
The closure of the Strait of Hormuz has unsettled global energy markets. According to the International Energy Agency (IEA), 20 Mn barrels of crude oil products were transported through the Strait in 2025, which accounted for a quarter of the world’s daily energy needs. The closure has driven fuel futures higher, with the Brent futures reaching USD 112 per barrel on 19 March 2026 (Figure 1). A phenomenon called “backwardation” is clearly visible in the fuel market, implying that spot market prices for “physical” fuel are significantly higher than futures prices for “paper” fuel.
Demystifying Hawala/Undiyal – The Not So Dismal Science:[…] believed that informal fund transfer operations in Sri Lanka have expanded considerably due to the wide gap between the…