Sri Lanka’s monthly fuel import bill is on track to fall to about US$198 million by July, down from a peak of US$522 million in April, provided global oil prices remain stable or continue to ease, Ceylon Petroleum Corporation (CPC) Chairman D.J. Rajakaruna said.
Rajakaruna told reporters the CPC had historically spent about US$100 million a month on fuel imports, but that figure spiked sharply through April as international prices surged and the corporation was forced to import additional diesel for electricity generation.
“On average, the CPC used to spend around US$100 million a month on fuel imports. However, that figure rose to US$522 million in April, which was paid in May. In fact, last month saw the highest amount of dollars leaving the country for fuel purchases,” the Chairman said. The CPC brought in 11 shipments during April, “all purchased at higher prices,” including an extra diesel cargo for power generation.
He said the monthly bill had since come down to “around US$318 million this month,” and the corporation’s projection was for it to fall further to about US$198 million by July as crude supplies for the Sapugaskanda refinery are now fully secured and global diesel prices ease.
Cabinet Spokesman Nalinda Jayatissa on Tuesday published a similar trajectory citing Ministry of Finance data, with the fuel bill rising from $186m in January to $521m in May. The April peak was first flagged in Central Bank data showing a US$886 million fuel month when broader product imports were included.
Rajakaruna cautioned that the outlook beyond July depends on the global market and Middle East tensions. “If prices rise again or if the conflict escalates further, we will need to hold discussions with the IMF and decide on the next course of action,” he said. The CPC has already disclosed sharp per-litre losses on petrol, diesel and kerosene at current retail prices, and the May 30 retail revision did not fully close the gap.
Source: Newswire.
