Sri Lanka received its first crude oil shipment since the Middle East conflict at $71.99 per barrel, Deputy Energy Minister Arkam Ilyas announced at a media briefing on Thursday.
The vessel Desh Mahima, owned by the Shipping Corporation of India, arrived from the UAE carrying approximately 97,500 metric tons of crude oil. It docked at Colombo Port and the cargo is being transported to the Sapugaskanda Oil Refinery.
Pipeline of shipments secured
“We are also receiving another shipment on April 29 at $71 per barrel and another one in mid-May at $113 per barrel,” Ilyas told reporters. “We have never purchased crude oil at that price. We have always bought at around the index price.”
The $71.99 price contrasts sharply with claims that Sri Lanka was paying as high as $286 per barrel for refined products during the crisis. Transport Minister Bimal Ratnayake challenged those allegations at the same briefing, calling on critics to present proof.
Refinery context
Sri Lanka’s Sapugaskanda refinery has been modified to process Murban crude since 2012 after US sanctions on Iran denied access to Iranian light crude, for which the 50,000-barrel-per-day facility was originally built. Efficiency has declined due to the use of alternative crude types, and CPC had ordered West Texas Intermediate (WTI) crude as a fallback during the crisis.
The arrival is a significant milestone after weeks of fuel rationing and supply disruption caused by the Strait of Hormuz crisis. Thursday’s shipment adds to the 12 fuel deliveries CPC has scheduled for April–June and follows China’s agreement to supply a consignment and a 36,700MT petrol shipment from India.
