With a new 30% reciprocal import tariff imposed by the US on certain Sri Lankan exports set to take effect on 1 August, the Ceylon Petroleum Corporation (CPC) is proactively exploring avenues to import West Texas Intermediate (WTI) crude oil from the US.

This strategic move aims to diversify Sri Lanka’s energy sources and potentially mitigate the broader economic impact of the evolving trade relations between the two nations.

CPC Managing Director Dr. Mayura Neththikumarage confirmed to The Sunday Morning that WTI crude was now being incorporated into the corporation’s tender process. 

“If a supplier offering WTI wins the tender, the product will be sourced from the US,” he stated.

This signifies a departure from previous import patterns, which largely focused on Murban crude.

WTI, a high-quality crude oil originating from the United States, is a key benchmark globally.

Dr. Neththikumarage revealed that several prominent US-based crude suppliers, including Chevron and Vitol, had already expressed interest and registered with the CPC, making them eligible to participate in forthcoming tenders. 

He added that all purchases would adhere to a stringent competitive procurement process.

While the 30% US tariff primarily targets Sri Lankan goods entering the US, Dr. Neththikumarage indicated that the impact on Sri Lanka’s imports of petroleum products from the US would likely be mitigated, with potential for 30% cost reductions for importers.

A critical aspect under discussion is whether an agreement or tender for US crude finalised before the 1 August tariff deadline could result in an exemption from the new levy.

“My understanding is that if the agreement is finalised before 1 August, the tariff may not apply,” he explained, noting that the Ministry of Finance was currently handling discussions on exemptions and their mechanisms.