Chairman of the Ceylon Petroleum Corporation (CPC), D.J. Rajakaruna, has clarified that crude oil was never purchased at the price of USD 286 per barrel during imports to Sri Lanka, but admitted that diesel had been procured at prices exceeding USD 286 per barrel.
Speaking at a media briefing held today (17), he commented on media reports surrounding a recent statement made by the CEO of HSBC and clarified that at no time was crude oil bought at such a price.
He explained that after the Middle East conflict began, a crude oil shipment arrived in the country on March 11, priced at USD 66.99 per barrel.
He further noted that another crude oil shipment was scheduled to arrive today (17), priced at USD 71.99 per barrel.
Accordingly, he stated that crude oil was never purchased at the reported figure, but admitted that diesel had been procured at prices exceeding USD 286 per barrel.
“I think the issue has arisen because of a statement made by the CEO of HSBC. Either it was misinterpreted and reported incorrectly by the media, or it was deliberately publicized. When we checked, HSBC had issued a media release saying fuel purchases had been made. They did not say crude oil. They said fuel. That is correct. Therefore, this kind of publicity creates unnecessary confusion in the country,” he said.
Rajakaruna explained that, due to the Middle East crisis, diesel prices rose sharply, forcing the CPC to purchase diesel at prices ranging from USD 285.28 to USD 288.06 per barrel in shipments that arrived in the country on March 31 and April 7.
“Diesel prices in the world market have risen sharply. From what we purchased, the flat average was around USD 242 per barrel. Premium values went up by 48 to 50 dollars, which increased the price further. If we had not purchased at those rates, the country would have faced a fuel shortage,” he added.
Rajakaruna stressed that while crude oil prices remained far lower, the surge in diesel prices was unavoidable, and the CPC had to procure supplies at higher rates to ensure uninterrupted fuel availability in the country. (Newswire)