Govt. settling fuel debts – Minister

By Ifham Nizam

The government has allocated nearly USD 80 million for settling debts, related to fossil fuel purchases, and for further fossil fuel intake, Power and Energy Minister Kanchana Wijesekera told journalists yesterday, adding that 10 fuel shipments would arrive here within days.

USD 11 million had been paid to Lanka IOC on 30 June for the procurement of 7,500 MT of diesel, Minister Wijesekera said.

Prepayments had been made for two other companies, namely Indian Coal Energy that would supply 40,000 MT of auto diesel between 08 July and 09 July.A shipment of 40,000MT from Vitol is scheduled to reach the country between 11 and 14 July 11.

Wijesekara said that USD 28 million had been paid for that consignment, while another USD 49 million was slated to be paid on 08 July.Wijesekera also said that they were also expecting two more fuel shipments, containing both petrol and diesel either on 22 or 23 July.

Providing an update on the availability of fuel in the country, he said nearly 12,774 MT of diesel, 1,414 MT of petrol 92 octane, 2,647 MT of petrol 95 octane, 233 MT of super diesel, 500 MT of aviation fuel and 29,000 MT of furnace oil were in stock at present.

The Minister said that they are expecting the following fuel shipments this month:

July 08-09: 40,000 MT of diesel (Ceypetco),

July 11-14: 40,000 MT of diesel (Ceypetco)

July 13-15: 30,000 MT of diesel/petrol (LIOC),

July 22-23: 40,000 MT of diesel (pending approval)

July 22-23: 40,000 MT of petrol (Ceypetco),

July 29-31: 30,000 MT of diesel/petrol (LIOC) and

August 13-15: 30,000 MT of diesel/petrol (LIOC)

Nearly 110,000 MT of diesel, 70,000 MT of petrol and 40,000 MT of diesel (pending approval) will arrive in the country, the Minister said.

Meanwhile, Lanka IOC said it was expecting three shipments of petrol and diesel in Sri Lanka this month and in August. The first shipment is expected between 13 and 15 July. The second shipment is expected to reach between 29 and 31 July, while the third shipment is scheduled to arrive between August 10 and 15.

Each vessel will be carrying 30,000 metric tonnes of fuel, according to Lanka IOC Chairman Manoj Gupta. All these shipments will be arriving from Singapore and the United Arab Emirates (UAE).