SL’s Energy Initiatives Yield Positive Results – USD 3 Million Revenue from Bunkering System
February 09, Colombo (LNW): D.V. Chanaka, the State Minister of Power and Energy, announced that Sri Lanka has successfully generated USD 3 million in revenue through the sale of 5,200 MT of fuel via the revitalized bunkering system for vessels. This achievement marks a significant milestone in stabilizing the country’s energy finances, demonstrating proactive efforts towards economic resilience.
Highlighting the establishment of a USD 200 million buffer stock, Minister Chanaka emphasized the importance of this measure in mitigating potential economic fluctuations and ensuring energy security. He commended collective efforts that have contributed to the nation’s progress, recalling past challenges, including fuel shortages and long queues, and expressing gratitude for the dedication of all involved.
Minister Chanaka proudly revealed that Sri Lanka currently holds its largest oil reserves in recent history, indicating improved fuel security and preparedness. He reassured the public about maintaining a balanced petroleum legal corporation dollar system, showcasing responsible financial management within the sector.
The government’s proactive measures extend beyond revenue generation, as evidenced by the creation of a USD 200 million buffer stock to safeguard against economic shocks. Additionally, they maintain a weekly supply of dollars to meet immediate needs, reflecting a commitment to responsible financial management.
Minister Chanaka shared that the current fuel stock exceeds 75,410 tons, covering various fuel types for vehicles, aviation, and power generation. This accomplishment is attributed to securing long-term contracts through tender procedures, ensuring a steady supply for the next six months.
Anticipating a potential decrease in global oil prices after March, Minister Chanaka expressed optimism for passing on the benefits to consumers. The government’s focus on strategic storage, timely purchases, and the elimination of late payment fees since 2023 reflects a comprehensive approach to navigating global oil price fluctuations.
Furthermore, Minister Chanaka outlined positive developments in Sri Lanka’s oil procurement strategies, including the elimination of annual late fees through a new storage system, the transition from a traditional tender method to an auction system, and exploration of new technologies to reduce procurement fees.
The restart of the bunkering system in 2024, allowing ships to refuel, has not only contributed to revenue generation but also demonstrated Sri Lanka’s commitment to expanding services by providing diesel to vessels in the near future.