While crisis further worsens, Sri Lanka govt grants companies of fuel imports

Colombo, Jun 28: Sri Lanka Cabinet has granted to open fuel imports and retail sales market to companies from oil-exporting nations, after the crisis struck island nation ran out of fuel as only 1,100 tons of petrol and 7,500 tons of diesel are left, which are not sufficient to last for a day. Sri Lanka Power and Energy Minister Kanchana Wijesekera announced the fuel import grant.

 

 

 

 

According to Power and Energy Minister Kanchana Wijesekera, the companies will be selected upon their ability to import fuel and operate without Forex requirements from the CBSL and banks for the first few months of operations. Sri Lanka media reports him saying, the Ceylon Petroleum Corporation (CPC/ CEYPETCO) will be the service provider for logistics, stocking and distribution with a service fee levied from those companies.

 

 

 

 

 

Wijesekera said, "Selected outlets of the existing 1,190 CEYPETCO and new outlets will be made available for LIOC and new companies which would be selected. Refinery will remain under CPC's purview." Earlier on Saturday (Jun 25) the minister had said that suppliers have informed state-owned fuel importer and distributor Ceylon Petroleum Corporation (CPC) that they will not make the deliveries of petrol, diesel and crude oil, scheduled for this week and next week due to banking and logistic reasons.

 

 

With no fuel shipment in sight any time soon, Sri Lanka will come to a complete standstill from this week, as even public transportation will come to a grinding halt. Not only this, but lengthened power cuts will also come into effect soon as the required stocks of fuel will not be supplied to the power plants.