COLOMBO : The Ceylon Petroleum Corporation (CPC) has categorically rejected reports claiming that Sri Lanka paid US$286 per barrel for crude oil, describing the information as false, misleading, and damaging to the institution’s reputation.
Issuing a formal clarification, the CPC said that crude oil imports to Sri Lanka are carried out solely by the corporation for refining at the Sapugaskanda Refinery, and that no crude oil consignment imported or contracted by the CPC has been purchased or agreed to be purchased at a price anywhere near US$286 per barrel.
The statement noted that following the escalation of tensions in the Middle East, the first crude oil shipment to Sri Lanka is scheduled to arrive on April 17. It stressed that none of the crude oil cargoes imported or contracted after the outbreak of hostilities carry such an excessive price tag.
According to the CPC, the agreed prices for crude oil shipments arriving after the Middle East conflict stand at approximately US$71.99, US$111.62, US$71.81 and US$113.29 per barrel.
The corporation said these rates are highly competitive and advantageous when compared with prevailing global market prices.
The CPC said that it has successfully secured crude oil supplies under favourable and competitive conditions, relative to other market participants, ensuring continuity of refining operations while safeguarding national energy interests.
The clarification was issued under the hand of the Chairman of the Ceylon Petroleum Corporation. Earlier, the Financial Times quoted HSBC Chief Executive Georges Elhedery as saying that the highest “door-to-door” price he had seen for a barrel of oil delivered to the island had reached $286, a figure that includes sharply higher costs for shipping, insurance, and logistical risk.News First
