Gammanpila says no more dollars to purchase fuel as crisis reaches peak

Energy  Minister Udaya Gammanpila today said the crisis of raising US dollars for fuel purchases has reached its peak while the Central Bank has proposed to Treasury a fuel price revision in order avoid a further crisis.

Minister Gammanpila said that for the monthly fuel requirement the country needs US $ 360 million, but with the total foreign reserves now dropping to US $ 1.5 billion the crisis has reached its peak.

He said that the Ceylon Electricity Board  and independent power producers  owe the Ceylon Petroleum Corporation Rs 96 billion while the Sri Lankan Airlines owes the CPC US $ 330 million (Rs 65 billion )

He said the Central Bank has notified the Finance Ministry that in order to avoid a further crisis, the fuel prices should be revised.

Mr Gammanpila said that according to the proposal the petrol prices should be revised by Rs 35 per litre, diesel by Rs 24 per liter and kerosene oil by Rs 11 pet litre.

The minister confirmed a Sunday Times report that his ministry has  officially informed to Sri Lankan Airlines that it will not be possible to supply Jet A1 (Jet fuel) if they have not done any dollars payments.

"SriLankan Airlines may be able to find the US dollars as they receive payments in dollars,” he said.

However, he said it will be a challenge for the CEB to raise dollars.