Sri Lanka which is heavily dependent on Middle Eastern oil is looking on with increasing uneasiness as the US imposed new economic sanctions on Iran although the easing of war threats.
The country imports 30 to 40 per cent of its crude oil from the conflict-prone Gulf region government data showed.
The Ceylon Petroleum Corporation (CPC) said that it has enough stocks of fuel in its possession and there is no need for the public to be concerned about a fuel shortage.
CPC noted that it currently has fuel stocks sufficient for 19 days. Moreover, ships carrying 16, 000 tonnes of fuel are due to dock in Colombo on January 17 and 18 while a further 15, 000 tonnes of fuel are due to arrive on January 24 and 25.
The CPC says it has also made plans to purchase fuel stocks from Singapore and Malyasia in the event armed hostilities break out in the Persian Gulf region.
Current fuel stocks are as follows: Petrol (92 Octane) - 47, 947 tonnes, Petrol (95 Octane) - 16, 000 tonnes, Lanka Auto Diesel - 111, 957 tonnes, Super Diesel - 4463 tonnes, Aviation Fuel - 380, 86 tonnes and 70, 130 tonnes of furnace oil. These numbers do not include the fuel stocks that are due in the coming days, the CPC added.
SriLanka buys crude and refined petroleum from Singapore, Dubai, Fujairah, Ceylon Petroleum Corporation (CPC) official said adding that the fuel prices will go up to new high if the Gulf tension is escalated.
Output from the Sapugaskanda oil refinery meets 40 percent of Sri Lanka’s demand for refined fuels and the government imports 60 percent of the refined fuels consumed domestically, CPC sources said.
Ceylon Petroleum Corporation’s emergency crude reserves are only capable of meeting the country’s petroleum requirement for a considerable period.
The Lanka Indian oil Corporation (LIOC) has sufficient patrol and diesel reserves to meet any eventuality.
If the oil price continues its upward trend owing to US-Gulf tensions the LIOC will have to increase prices in accordance with government terms.