Colombo [Sri Lanka], June 28 (ANI): Amid the economic crisis and severe fuel shortage in Sri Lanka, Indian Oil's subsidiary in Sri Lanka, Lanka IOC (Indian Oil Corporation) announced to restrict the sale of petrol to a maximum of Rs 7000 for four-wheelers, with immediate effect.

"Lanka IOC with immediate effect restricts sales of Petrol as follows:: 2 Wheelers : Rs.1500/- 3 Wheelers : Rs.2500/- 4 Wheelers : Rs.7000/- Inconvenience caused is deeply regretted," tweeted Lanka IOC PLC.

Lanka IOC is the only private oil company that operates retail petrol and diesel stations in Sri Lanka.

Meanwhile, with the rapidly declining fuel supply, the Sri Lanka government restricted issuing fuel to private vehicles and announced providing fuel only for essential services with effect from Monday night, Daily Mirror reported.

Sri Lanka's Cabinet spokesman Bandula Gunawardena said, "The fuel crisis in the country was discussed at length at the Cabinet meeting held yesterday and it was decided to issue fuel only for essential services. It was decided to provide fuel to essential series, such as ports, health sector, distribution of essential food items, and transportation of agricultural products, until July 10."He also assured that a mechanism to provide a continuous supply of LP gas and fuel would be in place after the 10th of July.

"Inter-provincial transport services will be halted due to limited stocks of fuel. Filling stations will not issue fuel to private vehicles during this period. The supply of fuel for essential services is done at SLTB depots and tri-forces manning filling stations," Daily Mirror quoted the minister as saying.

The Sri Lankan Cabinet on Tuesday granted to open fuel imports and retail sales market to companies from oil-exporting nations after the country ran out of fuel as only 1,100 tonnes of petrol and 7,500 tonnes of diesel are left, which are not sufficient to last for a day.

Power and Energy Minister Kanchana Wijesekera said that the companies will be selected upon their ability to import fuel and operate without Forex requirements from the CBSL and banks for the first few months of operations, reported Daily Mirror Online.

Prior to this, Wijesekera on Sunday announced that the fuel stations across the country will issue tokens for consumers, as only limited stocks of fuel were available.

The minister told that the suppliers have informed state-owned fuel importer and distributor Ceylon Petroleum Corporation (CPC) that they will not make the deliveries of petrol, diesel and crude oil, scheduled for this week and next week due to banking and logistic reasons.

He added that public transportation, power generation and industries would be given priority until the next shipments arrive. Therefore, limited stocks of diesel and petrol will be distributed to a few gas stations throughout next week.

Notably, Sri Lanka has been facing the worst economic crisis since independence in 1948, leading to an acute shortage of essential items like food, medicine, cooking gas and fuel across the island nation.

The nearly-bankrupt country, with an acute foreign currency crisis that resulted in foreign debt default, had announced in April that it is suspending nearly USD 7 billion foreign debt repayment due for this year out of about USD 25 billion due through 2026. Sri Lanka's total foreign debt.

The economic crisis has particularly impacted food security, agriculture, livelihoods, and access to health services. Food production in the last harvest season was 40 - 50 per cent lower than last year, and the current agricultural season is at risk, with seeds, fertilizers, fuel and credit shortages.

Sri Lanka is one of the few nations named by the Food and Agriculture Organization (FAO) which is expected to go without food due to the global food shortage expected this year. (ANI)