Sri Lanka is facing difficulties and challenges in importing fuel at present, Minister of Energy Kanchana Wijesekera said today.

He said a 7-member committee is exploring the best procurement methods to purchase fuel.

Stating that the last fuel shipment under the Indian credit line that arrived today is being inspected, the Minister said if all goes well, the authorities will be able to start distribution from this evening.

“We can’t say anything about the next US$500 million Indian fuel credit from the Indian EXIM Bank until India officially confirms this. We hope that we get the confirmation sooner,” he said.

Minister Wijesekera further said that they have also placed orders to buy two crude shipments.

“But until we receive these shipments, we cannot confirm anything. We have now discussed with four suppliers and we hope at least one supplier could bring the crude,” he said.

The Energy Minister also revealed that Sri Lanka’s refinery is in the process of refining crude and that the government will be able to manage the fuel distributions.

Commenting on the shortage of fuel at present, he explained that Sri Lanka is facing a lack of credit period from new suppliers to buy fuel and is forced to buy on cash.

The Minister said the reason for the huge queues is because the Bank of Ceylon had rejected the government’s request to open a letter of credit on June 9 and 10.

Minister Kanchana Wijesekera said, as a result, a shortage of fuel has now occurred in the country.

He further said that he and Prime Minister Ranil Wickremesinghe today held discussions with the Chairman of People’s Bank on opening a letter of credit (LOC) to buy fuel shipments and that they expect to open the LOC today.

The Minister further said that the state-run Ceylon Petroleum Corporation (CPC) intends to enter into a deal with the chosen firm to supply aviation fuel.

He said fuel will be supplied with the firm’s cash and then the cost will be covered from sales, so that the government does not require to spend any US dollars to buy aviation fuel.

Giving a breakdown of the fuel required for Sri Lanka, the Minister said 5400 MT of Diesel is required per day.

However, only 3000 MT is being supplied per day at present and arrangements are underway to supply 3000 MT daily next week as well.

He further said 3400 MT of petrol is required per day, but only 2600 MT is supplied currently and arrangements are underway to supply 2600 MT daily next week as well. (NewsWire)