On Line: 26 October 2012 15:23
In Print: Saturday 27 October 2012
In Print: Saturday 27 October 2012
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The Sri Lankan Government has had to spend an
additional sum of $ 1. 2 billion to import crude and refined oil into
the country due to the U.S. sponsored sanctions against Iranian oil
exports, Minister of Petroleum Industries Susil Premajayanth told Parliament.
The Minister said that by October last year
the government had spent U.S. $ 3.8 billion on oil imports but this amount
had reached U.S. $ 5 billion by now.
The Minister said that the Government has made
arrangements to purchase crude oil from Saudi Arabia and other oil producing
nations and orders have been placed for 135,000 metric tons of Arabian light
oil and for another 80,000 MT in the open market.
The Minister said this response to a query raised by
JVP MP Anura Dissanayaka.
The Sri Lankan government says it will discuss with
the United Nations and several foreign countries the petroleum crisis the
island is facing due to the sanctions imposed on Iran by the United States as
Sri Lanka is incurring an additional cost of $ 1.2 billion for importing
refined fuel.
Sri Lanka cabinet spokesman, Media Minister Keheliya
Rambukwella responding to a media query on the temporary suspension of
operations at the Sapugaskanda oil refinery at a press conference said the
government expects to hold discussions on the issue with the UN, U.S. and the
European Union.
Sri Lanka's petroleum authority, Ceylon Petroleum
Corporation (CPC) has decided to switch off the nation's only oil refinery in
Sapugaskanda due to shortage of supplies of Iranian crude oil.
Minister Rambukwella, noting that a punishment
imposed on one nation had affected others adversely, said discussions will be
held to find a solution to Sri Lanka's oil crisis brought about by the
sanctions.
The Petroleum Resources Minister Susil Premajayantha
responding to questions revealed in the parliament that U.S. sanctions
imposed against Iran have made it difficult for Sri Lanka to obtain crude and
importing refined fuel to avert shortages of fuel in the country has caused
Sri Lanka to incur an additional cost of $ 1.2 billion.
The Sapugaskanda oil refinery, which processes
50,000 barrels of crude per day, is built to refine only Iranian crude. Major
changes to the refinery are needed for it to process crude oil from other
sources.
In June, the United States exempted Sri Lanka along
with six other countries from financial sanctions after they have agreed to
reduce their imports of Iranian oil.
The CPC said it has been compelled to reduce the
number of ships carrying crude oil to Sri Lanka from Iran due to the U.S.
sanctions.
The authorities have discussed the modernization of
the refinery with several countries and plans to have discussions with China
for help.
(Source: agencies)
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