Tetraoxy-anion of iron in +6 oxidation state (FeVIO42−, FeVI), commonly called ferrate, has shown tremendous potential as a green oxidative agent for decontaminating water and air. Encapsulation of solid potassium salt of ferrate (K2FeO4) circumvents the inherent drawbacks of the instability of ferrate under humid conditions. In the encapsulated strategy, controlled release without exposing the solid ferrate to the humid environment avoids self-decomposition of the oxidant by water in the air, and the ferrate is mostly used to decontaminate water efficiently. This study demonstrated the formulation of oxidative microcapsules with natural materials present in chitosan, whose release rate of the core material can be controlled by the type of intermediate hydrocarbon layer and the pH-dependent swelling of chitosan shell. The pH played a pivotal role in swelling chitosan shell and releasing the core oxidant. In a strong acidic solution, chitosan tended to swell quickly and release FeVI at a faster rate than under neutral conditions. Additionally, among the several long-chain hydrocarbon compounds, oleic acid exhibited the strongest “locking” effect when applied as the intermediate layer, giving rise to the slow release of FeVI. Coconut oil and mineral oil, in comparison, allowed FeVI to penetrate the layer within shorter lengths of time and showed comparable degrees of degradation of target contaminant, methylene orange, under ambient temperature and near-neutral conditions. These findings have practical ramifications for remediating environmental and industrial processes.