Recently, fuel prices in Sri Lanka have seen a reduction, with 92 Octane petrol dropping by Rs. 21 to Rs. 311, auto diesel by Rs. 24 to Rs. 283, and kerosene oil by Rs. 19 to Rs. 183. These cuts come in response to a decrease in global crude oil prices, which have fallen from USD 77 to USD 72 per barrel.
However, geopolitical tensions in the Middle East, particularly the escalation of attacks and the potential involvement of Iran in the conflict, pose significant risks to global oil supplies. If Iran becomes directly involved, this could lead to supply disruptions within OPEC, potentially driving oil prices back up and affecting global energy markets. This volatility might reverse the trend of falling fuel prices if the situation worsens.