Chairman of the Ceylon Petroleum Corporation (CPC), D. J. Rajakaruna, has firmly rejected claims that Sri Lanka procured crude oil at a price exceeding $286 per barrel when importing fuel to Sri Lanka.

Addressing a media briefing today (17), he emphasized that at no point had a barrel of crude oil been procured at such a high price. 

He noted that, following the onset of the conflict in the Middle East, a shipment of crude oil arrived in the country on March 11 at a price of USD 66.99 per barrel. 

He further stated that another crude oil tanker is scheduled to arrive today (17) at a price of USD 71.99 per barrel.

While rejecting claims regarding crude oil prices, the Chairman clarified that the CPC had been compelled to purchase diesel at prices exceeding USD 286. 

He attributed this to the sharp increase in global diesel prices due to the Middle Eastern conflict, with procurement prices ranging between USD 288 and USD 303.

Providing further clarification, Rajakaruna stated that misinformation had arisen from a statement made by the CEO of HSBC, which had been either misunderstood or misreported by sections of the media. 

He noted that HSBC had subsequently issued a clarification stating that it had referred to “oil purchases” in general, not specifically crude oil.

“Diesel prices in the world market have risen significantly. Based on flat averages alone, our highest purchase price reached 242 USD, but with premiums rising to 48 USD or 50 USD, the total cost increased. If we did not procure fuel at those prices, the country would have faced a total supply breakdown,” he said.
 
He noted that a diesel shipment received on March 31 cost USD 285.28 per barrel, while another shipment on April 7 was priced at USD 288.06. 

“The price of Super Diesel during this period had risen to USD 303.77 per barrel,” he added.