Fuel import costs set to plunge in July

Sri Lanka's fuel import bill will drop sharply to USD 198 million in July, down from the USD 520 million spent in May.

Ceylon Petroleum Corporation Chairman D.J. Rajakaruna announced yesterday (3) that the high expenditure in May resulted from procuring an unusual eleven shipments in April.

A standard month requires just five shipments, including two of crude oil.

The April surge occurred because the refinery lacked the necessary crude oil and power generation required extra diesel.

The corporation redirected an entire diesel shipment to electricity generation in April to combat low hydropower output from the drought and high nocturnal electricity demand caused by intense heat.

Costs eased to USD 318 million in June before the projected July drop, which officials expect will ease pressure on the depreciating Sri Lankan Rupee against the US dollar.