The Hon. Kumara Jayakody - Minister of Energy

¶ 01 Hon. Presiding Member, owing to the conflict involving Iran, Israel and the USA, severe pressure is being felt globally regardless of whether countries are strong or weak. An energy crisis has arisen worldwide, gravely impacting economies and daily life. The main reason is not a shortage of crude itself, but attacks on production facilities, loading ports, shipping routes and vessels. This continues. The regions from which Sri Lanka obtains crude have been affected. We source refined diesel, petrol and other products mainly from Singapore, Malaysia and India; crude largely from the upper Arabian region. Our Sapugaskanda refinery gives us a significant advantage, especially as 100% of our kerosene distribution comes from local refining, helping us manage retail prices. Several obstacles arose: delays in scheduled cargoes due to restricted shipping; marine insurance and vessel insurance costs have surged; suppliers under existing agreements have also been affected.

¶ 02 Even the US, a main party to the war, with oil, ships, insurers and dollars, faces supply challenges because producers like Canada and Saudi Arabia have pushed prices upwards.

¶ 03 Our current situation is unlike in past years when the country was looted, dollars vanished, and we lacked fuel despite global availability and normal logistics. Today, as a Government that cares for people and industry, and for the continuous functioning of the economy, we have taken steps with a firm resolve.

¶ 04 Our foremost aim has been to supply fuel to all, in required quantities, at required times. At times we could not prioritise price; supply had to be ensured. We implemented various measures. I must commend my Ministry, the Ceylon Petroleum Corporation, CPSTL, senior management and staff — they worked tirelessly. We sought to avoid unnecessary stockpiling while supplying adequate quantities so that daily life and the economy could function smoothly. Before introducing mechanisms, some public anxiety arose; but we consistently said we had stocks through April. We still maintain that position and have taken steps to sustain it — not only saying so, but doing so.

¶ 05 We first introduced the QR code on a Sunday, anticipating technical issues, as Sunday minimises customer impact. Before QR, average daily consumption was about 4,880 MT of diesel and 4,045 MT of Octane 92 petrol; Super Diesel 176 MT, Octane 95 petrol 231 MT, and kerosene 394 MT. With the war’s onset and prior to QR, issuance surged: Octane 92 to 123%, diesel to 138%, Super Diesel to 158%, Octane 95 to 148%, kerosene to 163% — indicating hoarding behaviour.

¶ 06 After QR, we introduced the odd-even (number plate) system and ensured uninterrupted supply to all outlets. Queues have disappeared; the situation has normalised: Octane 92 down to 102% of baseline; diesel 103%; Super Diesel 100%; Octane 95 100%; kerosene 106%. This reflects effective management by the Government. There is no hoarding now; no queues; fuel is available. Within a month we stabilised the country.

¶ 07 For industry, CPC has supplied 5,132 MT of diesel (about 86% share), with Lanka IOC 9% and Sinopec 5%. Fuel oil for industry is 100% supplied by CPC — 1,029 MT.

¶ 08 As of today, stocks are: diesel 59,373 MT; Octane 92 petrol 97,783 MT. Incoming cargoes: diesel 203,000 MT and Octane 92 about 110,000 MT, with others similarly scheduled. Daily demand is secured up to the first week of June. Additionally, tenders open on the 16th and 21st of this month.

¶ 09 Currently discharging: a diesel cargo of 37,300 MT; Super Diesel 5,000 MT; Jet A-1 of 35,000 MT. Another diesel vessel has arrived for 37,300 MT. Further this month: on the 18th–19th, diesel 20,000 MT; on the 12th–13th, fuel oil 30,000 MT; on the 16th–17th, Octane 92 petrol 35,300 MT; on the 18th–19th, Octane 92 20,000 MT and diesel 20,000 MT; on the 21st–22nd, diesel 20,000 MT, Octane 95 petrol 3,000 MT and Octane 92 17,000 MT; on the 24th–25th, diesel 37,300 MT — all being arranged for discharge and distribution.

¶ 10 As a responsible Government, we understand people’s needs and act accordingly. Even where price increases occurred, we reduced the burden by absorbing Rs. 100 per litre of diesel — and we will continue. We did not increase fuel prices for April. We will minimise the burden on the people while keeping the economy running. Go see the highways: traffic is as usual. We will also provide necessary relief during the New Year season. As the President stated yesterday, while maintaining normal life and sustaining the economy, we will deliver relief to the people. I conclude. Thank you.