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Uninterrupted fuel supply: Near impossible: Energy Minister

15 Jan 2022

 
  • $ 400 m needed for fuel per month
  • CEB asked to find dollars for next purchase order
  By Marianne David  Maintaining an uninterrupted fuel supply is reaching “near impossible” levels, says Energy Minister Udaya Gammanpila, asserting that the task is increasingly challenging.  “So far we have managed to ensure uninterrupted fuel supply. Frankly, day by day I now feel that the situation is getting near impossible. The rest of the month of January will be very challenging,” the Minister told The Sunday Morning. While the country only has sufficient fuel stocks for another 20 days [from 13 January], he said the difficulty was in securing foreign currency for the retail requirement of petrol and diesel.  “We have sufficient stocks for another 20 days and we have to open Letters of Credit (LCs) for importing diesel and furnace oil for power plants. I am struggling to find foreign currency for the retail requirement of petrol and diesel,” he noted.  In this backdrop, despite the impact on the power sector, he said he couldn’t take on the burden of finding dollars for the Ceylon Electricity Board (CEB) as well. “I requested Power Minister Gamini Lokuge as well as the CEB to procure dollars and I will provide the oil required by them. This is the arrangement and they have agreed. The first LC will be opened next week. Whether they are in a position to procure dollars will be tested in the next week,” Minister Gammanpila revealed.  Stating that the country was seeking two credit lines, the Minister also acknowledged the support given by PetroChina via six months of credit for the shipments. However, despite having a six-month credit line, Sri Lanka was not able to open LCs for those shipments, he revealed.  “Sometimes our ship is at Colombo Port but we are still struggling to open LCs for the cargo. We need $ 400 million a month to meet our fuel bill – around 40% of our export income,” the Minister noted. Gammanpila further said that he had assured the country that if a fuel shortage was likely, he would inform the nation.  “So far we have ensured the uninterrupted supply of fuel and I have assured the country that if there is going to be a fuel shortage, before anyone else I will tell the nation that we are going to face such a situation. The situation is really difficult but so far we have been able to manage it.” See page 15 for the full interview.  


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