The quest for fuel oil in Sri Lanka continues in the face of a pandemic. The fast rise in global petroleum prices following Russia’s invasion of Ukraine has upset Sri Lanka’s fuel import plans, leaving the crisis-hit island country scrambling to pay for diesel amid power outages and gasoline pumps running dry.
Sri Lanka confronts its greatest economic crisis in years, with foreign reserves having fallen by 70% in the previous two years to only $2.36 billion by the end of January, while crude remains at about $130 per barrel, nearly tripling since early December.
Following a 47 percent increase to $50 million in the cost of an inbound supply of 38,000 tonnes of fuel a few weeks ago.
The report estimates Sri Lanka’s usable reserves to be under $800 million, leaving President Gotabaya Rajapaksa’s administration scrambling to pay for critical imports such as gasoline, food, and pharmaceuticals.
According to two insiders with intimate knowledge of the initial intentions, the government’s fuel import strategy has been hamstrung by the rise in oil prices. The finance ministry and Rajapaksa’s office did not respond to media requests for comment.
The following are the gasoline oil bunkering costs in Colombo for Week 14
Popular Ports | VLSFO $ | IFO380 $ | MGO $ | |||
---|---|---|---|---|---|---|
Colombo | 1,068.50 | 68.25 | 740.00 | 0.00 | 1,261.50 | -1.75 |
Prices are anticipated to escalate more
Rolling power outages have been affecting businesses and households around the island since mid-February, with some outages lasting up to seven hours.
Public transport frequently line at petrol pumps in Colombo, the commercial city, where hundreds of bakeries have run out of gas, raising bread prices.
According to sources, gasoline shortages have interrupted consumption, and daily diesel distribution has nearly risen to 10,000 tonnes from about 6,000 tonnes.
Each month, Sri Lanka consumes around 120,000 tonnes of fuel and 75,000 tonnes of gasoline.
During scarcity, the state-run Ceylon Petroleum Corporation (CPC) has conducted conversations with the government about raising rates, according to Sumith Wijesinghe, the CPC’s chairman.
We are losing 50 rupees per liter of fuel and 22 rupees per liter of petrol. We are exploring a new pricing structure since current rates cannot be sustained.
According to Wijesinghe
Lanka IOC, the second main gasoline marketer, has already hiked rates twice this year.
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Where does Sri Lanka get its oil?
Sri Lanka imports refined petroleum mostly from Singapore, valued at $367 million, India, valued at $259 million, Malaysia, valued at $210 million, the United Arab Emirates, valued at $143 million, and China, valued at $127 million. Between 2019 and 2020, the fastest emerging import markets for Refined Petroleum for Sri Lanka were China ($77.5M), Kuwait ($14.5M), and the Netherlands ($10.8M).
Does Sri Lanka import crude oil?
Sri Lanka imports over $6.0 billion in petroleum goods, including crude oil, refined petroleum products, and other petroleum-based items.
Is there oil in Sri Lanka?
Ceylon Petroleum Corporation (CPC), often known as CEYPETCO, is a Sri Lankan oil and gas business. The Government of Sri Lanka owns the whole company, which was founded in 1962. It is Sri Lanka’s largest oil corporation.
Is there a refinery in Sri Lanka?
The Sapugaskanda Refinery (also known as the Sapugaskanda Oil Refinery) is Sri Lanka’s largest oil refinery.
What is Sri Lanka’s major source of income?
In 2019, services contributed up 58.2 percent of the Sri Lankan economy, up from 54.6 percent in 2010, industry 27.4 percent, up from 26.4 percent a decade earlier, and agriculture 7.4 percent. Despite the existence of a competitive export agriculture industry, technical innovations have been reluctant to permeate the protected domestic sector.
How many oil refineries will be built in Sri Lanka?
The Ceylon Petroleum Corporation announced the construction of three new oil refineries in Sri Lanka on Monday. Speaking to the media, CPC Chairman Sumith Wijesinghe stated that these three refineries will be built in Sapugaskanda – Colombo, Trincomalee, and Hambantota.
How much does petrol cost in Sri Lanka?
In the country, a litre of petrol costs roughly 250 Sri Lankan rupees, while a litre of diesel costs around 200 Sri Lankan rupees. There is a Quest for fuel oil Sri Lanka because of the surge in global petroleum costs and, no funds are available to pay for it.
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