Shipment term

First diesel cargo under Indian line of credit is unloaded today

The unloading of the first shipment of diesel, which was received by the country under the Indian line of credit, will start today, Ceylon Petroleum Corporation (CPC) Chairman Sumith Wijesinghe said.

He said the prevailing fuel queues would ease in the coming days as the country would receive sufficient fuel stocks under this Indian line of credit. He said there would be no shortage of fuel (gasoline, diesel and kerosene) in the coming weeks.

He said the country had started receiving fuel under India’s line of credit from March 13 and a stockpile of jet fuel for aviation use was the first to arrive under the facility.

He said the Sapugaskanda oil refinery, which ceased operations yesterday, could resume operations in April, as long-term tenders have already been issued for crude oil, which is still priced above 100 dollars per barrel on the world market due to the conflict in Ukraine. Several countries have urged OPEC to increase production to bring prices down.

According to Wijesinghe, daily demand for diesel has increased due to over-purchasing in recent days, with some consumers filling up extra cans and barrels. He said a 92 octane gasoline vessel had unloaded at Muthurajawela and another Jet-A1 vessel and a diesel vessel at Colombo Port had started unloading. Two other diesel ships and a Jet-A1 ship are waiting to unload their stocks in ports.

India extends US$500 million line of credit for oil. Another US$1 billion line of credit for food and medicine was also recently signed in India during the visit of Finance Minister Basil Rajapaksa. The diesel fuel stocks currently received will be used for transportation and power generation.