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SL fuel purchase at sport price hits Forex reserve rock bottom

With its creditworthiness shot, the Sri lanka authorities is shopping for oil at spot costs, that’s, the going price as container ships pull into port inflicting thousands and thousands of {dollars} for demurrages and overpayments for consignments.

Lately, as a tanker docked exterior Colombo Port , the worth of its diesel cargo elevated from $35 million to $50 million,official sources stated.

The Ceylon Petroleum Company (CPC) has misplaced thousands and thousands of US {dollars} in gas purchases by resorting to identify shopping for from the market regardless that there’s a US$ 500 million Indian credit score line to import petrol and diesel.

The over-payments for gas consignments and demurrage for the delay in clearing shipments as a consequence of problem to find {dollars} together with irregularities of corrupt officers had been a number of the causes for these losses, an official remark report revealed.

It has been noticed that the CPC has additionally paid a sum of US $22 million as over-payments for 4 consignments of gas procured beneath spot buying just lately.In accordance with official paperwork referring to the fee of a latest cargo of gas, the pre bill of the fee obtained on March 22 has indicated the worth of the gas consignment as $52 million.

However the ultimate bill despatched thereafter has stipulated the worth of the identical consignment as $39 million. Ignoring the ultimate bill, the CPC has paid $52 million in settling the fee of the cargo on April 24, paying $13 million greater than the final stipulated quantity.

One other sum of $9 million over-payment had been paid for 3 different gas consignments totaling $22 million, the report indicated. Additional a sum of $4.2 million had been paid as demurrages by the CPC for shipments delayed on the port since this authorities got here into energy.

The CPC paid $558,000 for a latest consignment of petrol imported from Vitol Firm beneath quick time period spot buying, it added. It has been revealed that this cash may have been saved if the authorities expedited the gas shipments beneath the Indian credit score line, it stated.

The Vitality Minister has known as for a complete report on losses in spot purchases together with demurrages and over-payments made by the CPC, a senior ministry official stated. Delivering on India’s dedication to the folks of Sri Lanka, near 40,000 MT of petrol reached Colombo on Wednesday, the Indian Excessive Fee in Colombo stated.

With this Sri Lanka has obtained round 440,000 MT of assorted kinds of gas from India with extra to comply with, it stated in a Twitter message.

Sri Lanka is going through a scarcity of diesel as the continuing financial disaster worsens within the island nation, Minister of Energy and Vitality Kanchana Wijesekera stated on Thursday.The Minister advised Parliament that the nation wants 4,000 metric tonnes of diesel per day

Nonetheless, the state-owned Ceylon Petroleum Company is presently solely releasing 1,000 to 1,500 metric tonnes a day.

At the moment there isn’t any scarcity of petrol provide within the nation, he stated, including that round 3,000 metric tonnes of petrol has been launched every day, and {that a} ship carrying 40,000 metric tonnes of petrol arrived in Sri Lanka on Wednesday night time.

Sri Lanka has been struggling a diesel scarcity since February, which led to hours of day by day energy cuts.

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