Ceylon Petroleum Corporation Chairman D.J. Rajakaruna admitted on April 17 that diesel had been procured at prices exceeding $286 per barrel — but stressed that crude oil was never purchased at that figure.
Speaking at a media briefing, Rajakaruna said diesel shipments arriving on March 31 and April 7 cost between $285.28 and $288.06 per barrel. The spike was driven by Middle East conflict risk premiums that pushed refined diesel prices far above crude benchmarks.
“The flat average was around USD 242 per barrel. Premium values went up by 48 to 50 dollars,” he explained. “If we had not purchased at those rates, the country would have faced a fuel shortage.”
Crude oil, by contrast, remained far cheaper. A March 11 shipment cost $66.99 per barrel, while a tanker arriving April 17 was priced at $71.99. Two other crude shipments cost $111.62 and $71.81.
The clarification narrows a previous CPC denial issued on April 16, which appeared to reject the $286 figure entirely. Rajakaruna now attributes the confusion to how HSBC CEO Noel Quinn’s statement — which referenced “fuel” rather than “crude oil” specifically — was reported by media.
“HSBC said fuel purchases had been made. They did not say crude oil. That is correct,” Rajakaruna said. “This kind of publicity creates unnecessary confusion.”
The CPC’s admission effectively validates the figure that opposition leaders had cited as evidence of mismanagement amid the ongoing coal procurement scandal and Energy Minister Jayakody’s resignation.
