Lanka’s oil bill rises due to Iran crisis

Sri Lanka’s oil bill has increased by a massive Rs.1.2 billion due to its inability to import Iran Light Crude due to the sanctions imposed by the United States against that country,

Parliament was informed yesterday.

Petroleum Minister Susil Premajayantha made a detailed statement on the situation of the local fuel market in the House yesterday.

After the statement, UNP leader Ranil Wickremesinghe said the country’s oil bill would have increased fairly due to the present crisis situation. The Minister replied his authorities paid Rs.3.8 billion last year for the import of Iran Crude Oil, and they had to spend Rs. 5 billon this year to import crude oil from other markets.

The Minister said the US permitted Sri Lanka to import 10 shipments of Iran Light Crude a year instead of the usual import of 13 shipments.

“For the remaining requirement, we decided to import Arabian Light Crude. When we refine Arabian Light Crude, the yield is less. Again, by June, 2012, there were practical difficulties that arose even for the import of the permitted ten shiploads of Iran Light Crude. There were restrictions on the opening of Lines of Credit and shipments. Therefore, there was no way for us to import Iran Light Crude at all,” Mr. Premajayantha said.

Authorities paid Rs.3.8 bn last year for the import of Iran Crude Oil, and they had to spend Rs. 5 bn this year to import crude oil from other markets