07/04/2026

BIZ & FINANCE TUESDAY | APR 7, 2026

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Opec+ members agree to hike oil production quotas hitting global supplies well into the future.

Sri Lanka raises cooking gas prices by 23%

COLOMBO: Sri Lanka yesterday raised prices of liquefied petroleum gas (LPG) by nearly a quarter, blaming higher global prices triggered by the Iran war. As well as gas, Sri Lanka also imports all of its oil and buys coal for electricity generation. Colombo has warned that a prolonged war in the Middle East could seriously undermine efforts to emerge from its economic meltdown of 2022. The increase in cooking gas prices yesterday is on top of an 8% hike last month. A private company, which accounts for about a quarter of the domestic LPG market, raised its retail price by 23% to 5,700 rupees (RM72.82), up from 4,630 rupees. The state-owned Litro Gas, the main supplier of LPG used in cooking stoves, increased the price of a 12.5kg refill to 4,765 rupees, up from 3,990 rupees – an increase of 19.42%. “We have supplies for the entire month of April,“ a Litro spokesman said, adding that higher global LPG prices and shipping costs had forced the latest revision. Last month, Sri Lanka raised both fuel and electricity prices by more than a third as US-Israeli strikes against Iran and retaliatory attacks drove up global energy prices. The Strait of Hormuz, a key waterway through which about 20% of global crude oil and gas exports pass in peacetime, has been effectively closed since the start of the conflict. – AFP Australia has secured fuel shipments ‘well into’ May: Minister SYDNEY: Australia has secured shipments of fuel “well into” May and supply shortages have eased across the country’s service stations, Energy Minister Chris Bowen said yesterday. “We have secured contracted, legally binding supply well into May,” Bowen told reporters during a press conference. The government had previously indicated Australia had secured fuel imports until mid-April. Bowen said the percentage of service stations in Australia without diesel was down to 3.4%, lower than it was on Saturday. The government would continue to work with industry and trading partners to ensure fuel supply, Bowen said. “We’ve been very pleased with the response we’ve had from our Southeast Asian partners in particular, who recognise their role as reliable energy suppliers for Australia when it comes to our liquid fuels.“ Bowen called for the Strait of Hormuz to be opened “as quickly as possible so the economic impact on Australia and the rest of the world can be minimised.” Australia imports about 90% of its refined fuel, predominantly from Asian countries. Since the outbreak of the Iran war, six fuel shipments to Australia have been cancelled, but they have been replaced with alternative supplies. Australia has 39 days of petrol, 29 days of diesel and 29 days of jet fuel in reserve, Bowen separately told ABC Radio National Breakfast, a similar level to the start of the conflict. – Reuters

Before the war, about a fifth of global oil and liquefied natural gas (LNG) passed through the Strait. Ukraine has also been striking Russian oil industry facilities as it seeks to fight back against Moscow’s ongoing invasion. Last month, the eight-strong V8 (Voluntary Eight) group in the Opec+ cartel also raised production quotas by 206,000 bpd. On Sunday, the V8 said in a statement that “any actions undermining energy supply security, whether through attacks on infrastructure or disruption of international maritime routes, increase market volatility” and make it more difficult for Opec+ to manage global prices. The eight countries – Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman – praised members that managed to find alternate exports routes to deliver oil, “which have contributed to reducing market volatility”. – AFP

o Cartel warns that repairing energy facilities is ‘costly and takes long time’ VIENNA: The Opec+ oil cartel agreed on Sunday to again increase oil production quotas, while warning that repairing energy facilities, such as those damaged in the Middle East war, is “costly and takes a long time”. For the second month in a row, Opec+ countries – which include key oil producers Russia and Saudi Arabia, as well as several Gulf countries that have been targets of Iranian airstrikes – agreed to raise quotas by 206,000 barrels per day (bpd) from May. But the petroleum exporting countries warned that damage to energy infrastructure increases oil market volatility, potentially

Its statement also stressed “the critical importance of safeguarding international maritime routes to ensure the uninterrupted flow of energy”. The text did not mention the Iran war directly, but the conflict – which has roiled global energy markets and caused prices to surge – clearly weighed on the decision. The United States and Israel began striking Iran on Feb 28, and Tehran has retaliated by striking targets across the region. In addition to hitting key energy facilities in a number of neighbouring countries, Iran has virtually halted ship traffic through the vital Strait of Hormuz by threatening to attack tankers passing without permission. That has badly restricted exports from the Gulf region, and raised questions about whether oil can reach global markets even if Opec+ members in the region manage to ramp up production.

A drone view shows damage at storage facilities belonging to foreign oil companies, after what security sources said was a drone strike, west of the Iraqi city of Basra. – REUTERSPIC

India auto dealers say Iran war to hit supplies MUMBAI: India’s auto dealers yesterday warned of possible supply or dispatch disruptions in the near term as the West Asia conflict drove up raw material costs, even as the fiscal year’s total sales hit a record high. Suzuki, said that it will likely raise prices as the war pushed up commodity prices. A FADA survey showed that more than half of the dealers experienced some form of supply or dispatch disruption linked to the ongoing conflict, with 17.1% reporting significant delays of three or more weeks.

Indian retail auto sales rose 25.28% in March, the association said. Passenger vehicle sales rose 21.48% year over-year in March, while two-wheeler sales rose 28.68% and commercial vehicle sales rose 15.12%, closing the financial year on a strong note on sustained momentum from tax cuts that improved affordability, FADA said. The total retail sales for the financial year rose 13.3%. FADA also said passenger vehicle inventory, or the average time a car remained on the showroom floor, fell for a sixth consecutive month, to about 28 days in March, compared to 52 days in March last year. – Reuters

The broader operating environment is clouded by the conflict, the Federation of Automobile Dealers Associations (FADA) said in a statement. The war has pushed up oil and gas prices, raising fuel and logistics costs across the auto supply chain, while also driving up prices of key metals such as aluminium, copper and steel used in vehicle manufacturing. Last week, India’s top carmaker, Maruti

On the fuel-price front, 36.5% of dealers reported that rising fuel prices are moderately to significantly affecting customer purchase decisions, it added. While the impact was most pronounced in the commercial vehicle segment, passenger vehicle and two-wheeler dealers have also flagged selective delays based on different variants.