Will turn to U.S. or Nigeria for crude oil if Middle East war continues: CPC

By Ajith Siriwardana   

Assuring that there is no reason for a fuel shortage even if the war in the Middle East region continues, Chairman of the Ceylon Petroleum Corporation (CPC), D.J. Rajakaruna said yesterday the CPC has prior plans to purchase crude oil from America or Nigeria if the war continues.   

He told a special press briefing at the Government Information Department that Sri Lanka purchases finished products such as petrol and diesel from other regions and that the Middle East war will affect only the crude oil supply.   

He said Sri Lanka has received diesel and petrol from India, Singapore, South Korea and Malaysia last year, adding that the Middle East war has no impact on finished product supply.   

The Chairman said, considering the possible tension in the Middle East region, the CPC had made prior plans to purchase crude oil from other regions where samples from America’s WTI crude oil were tested in Sri Lankan refineries and received the green light.   

He said three tenders were called for WTI crude oil, but they were not chosen due to high shipping costs and added that the CPC is planning to call for a new tender next week.   

“If we have issues with Middle East crude oil, we can turn to U.S. crude oil. We can go for Nigerian crude oil as well. We have made prior plans. There is no reason for people to panic. Even if this war continues, there will be no fuel shortage,” he said.   

The Chairman said, however, that all countries in the world will have to face fluctuations in prices in the world market.  Responding to allegations that the government did not have plans to maintain enough fuel stocks, he said previous governments had not developed storage capacity to store sufficient fuel stocks. “We can store diesel only for 32 days, petrol 92 for 27 days and jet fuel for 11 days if the refinery is not operational. We have maintained maximum fuel stocks. The government has initiated projects to develop storage capacity, which will increase the capacity to store fuel for 45 days,” he said.  

Minister Nalinda Jayatissa said for the last four and a half months, Sri Lanka has received fuel from non-Middle East countries, where only one fuel shipment out of twenty-one was received from Oman, while seventeen were received from India and three from Singapore.   

He said even for the next one and a half months, fuel shipments are not due from Middle East countries.   

“Two shipments (35,000 tonnes) are due from Singapore on March 4 and 5. Two shipments (33,300 tonnes) from Singapore on March 7 and 8, and March 27 and 28 (35,000 tonnes) from Singapore. March 29 and 30 from Singapore (37,300 tonnes. Another two shipments are due from Singapore on April 8 and 9,” he said.