Sri Lanka looking for ways to stock up on cheap oil, use derivatives: Minister

ECONOMYNEXT- Sri Lanka is looking for ways to buy extra oil at low prices using derivatives or government -to-government deals, Energy Minister Mahinda Amaraweera said.

“We are discussing whether we can buy extra oil,” he reported in Colombo. “President Gotabhaya Rajapaksa at a meeting this week also instructed officials to look at using government to government agreements.

“So we are considering several countries.”

Sri Lnaka’s state-run Ceylon Petroleum Corporation is running losses.

Global oil prices plunged after a Coronavirus epidemic cut transport around the world and Saudi Arabia cut oil prices.

Brent North Sea crude was down to 33.73 US dollars per barrel this week from 56 dollars a week earlier.

Sri Lanka imports refined petrol, diesel and kerosene while some Oman crude is imported for refining.

Amaraweera said the government had not yet made a decision to cut retail tariffs but was looking at ways to make sure that transport costs also went down.

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(Colombo/Mar12/2020)

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