Sri Lanka Earns $3 Million from Revived Bunkering System, Achieves Energy Stability
Sri Lanka’s State Minister of Power and Energy, D.V. Chanaka, reported a revenue of USD 3 million from the reinstated bunkering system, marking a significant stride in bolstering the nation’s energy finances. The sale of 5,200 MT of fuel for vessels contributed to this positive development.
Minister Chanaka underscored the establishment of a USD 200 million buffer stock, highlighting the government’s proactive approach to navigate economic fluctuations and ensure energy security. He acknowledged past challenges, recalling fuel shortages and long queues, but commended collective efforts that led to the current stability in oil supply.
Proudly announcing Sri Lanka’s largest oil reserves in recent history, Minister Chanaka emphasized improved fuel security and readiness. He reassured the public about maintaining a balanced petroleum legal corporation dollar system, indicative of responsible financial management in the sector.
The government’s commitment to energy security was further emphasized by the creation of a USD 200 million buffer stock to shield against potential economic shocks. Weekly dollar supplies to meet immediate needs also underscored responsible financial management.
Minister Chanaka revealed the current fuel stock surpassing 75,410 tons, covering various fuel types for vehicles, aviation, and power generation. This includes 130,791 MT of Auto Diesel, 83,275 MT of Petrol 92, 8313 MT of Super Diesel, 11,196 MT of Petrol 95, 17,274 MT of Jet A1 for aircraft, and 17,274 MT of Fuel Oil (FO) for power generation. Long-term contracts secured through tender procedures ensure a stable supply for the next six months.
Anticipating a drop in global oil prices after March, Minister Chanaka expressed optimism for leveraging this decrease to benefit consumers. He highlighted the elimination of late payment fees since 2023, achieved by storing ships upon arrival and making timely purchases with available dollars.
The article outlined positive developments in Sri Lanka’s oil procurement strategies, including the elimination of annual late fees on oil purchases, transitioning to an auction system for procurement to optimize pricing, and exploring technologies to reduce procurement fees. The bunkering system, restarted in 2024 after a two-year gap, generated USD 3 million in revenue, with plans to expand services by providing diesel to vessels in the near future.