Fuel Deliveries This Week
Shakila Ifham
July 11, 2022
The Power and Energy Ministry has made advance payments for fuel delivery here with the assistance of the Central Bank and the Ministry of Finance to Lanka Indian Oil Company for a Diesel Cargo to arrive between July 15 and 17, and a Petrol Cargo between July 22 and 24.
Power and Energy Minister Kanchana Wijesekera told the media yesterday that advance payments were made last week.
He said that the balance payment will be made yesterday (11) for the Diesel and the balance payment for the petrol shipment to arrive between July 17 and 19 will have to be paid today (12).
He also said that three more cargoes will arrive in Colombo on the following dates: (today) 12th-15th July Diesel 14the -16th July Heavy Fuel Oil
15th-17th Crude Oil He said the payments for the above three cargoes will be made upon arrival.
The Minister said that the cargo scheduled to arrive on July 9th was delayed due to bad weather and could not be loaded on time and the supplier has communicated the departure from India this morning. The new arrival date has been given as 12th-15th July, said the Minister adding that all dates are given by the suppliers.
Central Bank Governor Dr. Nandalal Weerasinghe on Thursday said that the delay in increasing electricity prices by the CEB has made it impossible to pay for fuel purchases timely to the CPC impacting the cash flow of the CPC although it has already introduced a price formula.
He added that this has created a situation where the CPC has not been able earn enough rupees to buy dollars, he said adding that the CPC is still requesting rupees from the Treasury compelling it in turn to seek funding from the Central Bank via money printing.
The CEB is running at a loss due to its delay in increasing electricity tariffs making it difficult to earn adequate rupees to pay for fuel being purchased from the CPC, he added.
“Under this situation of no rupees to pay for dollars, the CPC has made a request of Rs. 217 billion from the Treasury to pay for emergency fuel procurement and the Treasury, in turn, seeks from the Central Bank funding via money printing,” he explained.
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