News
US protest raises Lanka’s fuel bill: Refined oil from S’pore
Strong protests by the United States that Sri Lanka was busting Iranian oil sanctions have prompted the Government to go into a long-term deal with a Singapore firm to import refined petroleum products from this month till June next year.
This will mean Sri Lanka will have to pay more for fuel purchases as refined oil is much more expensive than crude oil which is refined at Sapugaskanda.
The Ceylon Petroleum Corporation (CPC) has selected Swiss Singapore Overseas Enterprises (Pvt.) Ltd. to supply more than 2.4 million barrels every month. The company was one of six which responded to a tender in June this year to supply vast quantities of fuel.
The latest US concerns over Iranian oil procurements through third parties, thus flouting sanctions imposed by Washington, were conveyed to President Mahinda Rajapaksa by US Ambassador Michele Sisson. This was during a breakfast meeting she had on October 21 with President Rajapaksa.
The absence of Iranian crude oil, the most suited, may force a slowing down or a total closure of the Sapugaskanda Oil Refinery. The CPC’s Acting Chairman S. Amerasekera said the refinery was shut down as two shipments containing Iranian crude had to be turned away. He said this was following suspicion that the crude stocks came from Iran.
He said a further shipment due in Sri Lanka has also been delayed “by two to three days as the vessel was facing a technical problem.” The Acting Chairman said, however, adequate stocks of fuel were available at distribution points and there was no fear of a shortage. He said the Sapugaskanda refinery was only providing about 30 per cent of the fuel requirements of the country.
A Page 1 story in the Sunday Times of October 20 said that Sri Lanka was reportedly buying Iranian crude from third parties despite US sanctions.