CPC refutes $286 per barrel claim, threatens legal action

Colombo, April 16 (Daily Mirror) - The Ceylon Petroleum Corporation (CPC) has firmly denied claims that Sri Lanka paid $286 per barrel for crude oil, describing the reports as false and misleading, and warning of legal action against those responsible.

In a statement, the CPC Chairman said the corporation imports crude oil exclusively for the Sapugaskanda refinery and clarified that no shipment has been purchased or contracted at the reported price.

The CPC noted that the first crude oil shipment to arrive in Sri Lanka following recent instability in the Middle East is expected on April 17.

Rejecting the $286 figure, the corporation stated that crude oil shipments secured after the outbreak of conflict in the Middle East were priced at approximately $71.99, $111.62, $71.81 and $113.29 per barrel. These rates, it said, remain favourable compared to prevailing global market prices.

The CPC further stated that it has maintained a competitive position in securing crude oil despite volatile market conditions.

It also condemned what it described as false claims intended to damage the institution’s reputation, warning that legal action would be taken against those spreading misinformation that could lead to public concern and unrest.

The clarification follows remarks by Georges Elhedery, CEO of HSBC, who recently highlighted that oil prices for Asian buyers can exceed benchmark rates due to additional costs such as insurance, shipping and supply constraints.

Speaking at an investment forum in Hong Kong, and quoted by Middle East Eye, Elhedery said that while headline oil prices may range above $100 to $110, actual costs for buyers sourcing oil from the Middle East could rise to $140 or $150, adding that the highest figure he had heard was $286 in Sri Lanka.