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Energy crisis: Adequate fuel for September

18 Sep 2022

  • More crude oil and diesel due this week
By Asiri Fernando   Sri Lanka has adequate stocks of fuel for September with the unloading of three fuel consignments last week and another two shipments due to arrive this week, The Sunday Morning learns.  It is understood that the arrival of 37,000 MT of petrol last week enabled the Ceylon Petroleum Corporation (CPC) to avert an impending petrol shortage as reserves were extremely low.  A 99,900 MT shipment of crude oil valued at nearly $ 83.7 million will also help sustain the functioning of the ageing Sapugaskanda Oil Refinery. It is understood that the crude oil consignment will be used to keep the refinery operational for a 20-day period.  Two shipments – a 99,000 MT consignment of crude oil and another 40,000 MT of auto diesel – are expected to arrive off the coast of Sri Lanka this week.  According to a senior official at the Ministry of Power and Energy, the inbound crude oil shipment is expected to arrive between 20-22 September, while the auto diesel shipment is scheduled to arrive tonight (18).  “We now have adequate fuel till the end of September. Our concern was being low on petrol, but with the arrival of 37,000 MT over the weekend, we can sustain supply to the market till the end of the month,” the official told The Sunday Morning.  It is understood that two shipments of Murban crude oil are on order for the month of October, with strict payment terms that will require the Government to make 110%-120% advanced payments prior to the consignment being discharged.  Another three shipments of diesel and three shipments of petrol are also on order for the month of October, while two other shipments of fuel are expected to have tenders issued for next week.     BOX $ 205 m needed for fuel on order The Government requires almost $ 205 million to make payments for the confirmed fuel shipments for October, while the figure is likely to rise to $ 300 million for shipments which are yet to be confirmed, The Sunday Morning. Meanwhile, the Ceylon Petroleum Corporation (CPC) yesterday (17) denied reports of massive losses incurred due to the use of a lower grade of fuel which was less suitable to be refined at the Sapugaskanda Refinery.  Reports indicated that the use of a Russian crude oil variant, purchased in April, had created complications in the refinery process and was less efficient, leading to losses of close to $ 70 million over the last few months.  However, when contacted, Sapugaskanda Refinery Operations Manager Harindra Kodagoda denied the allegations, stressing that no such loss had been incurred.  “This is false news. The only time the refinery incurred losses was when it was shut down for months and was not producing petroleum products,” he stressed. Ministry of Power and Energy Secretary M.P.D.U.K. Mapa Pathirana also downplayed the credibility of the allegations levelled.  


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