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Fuel supply: CPC to fork out $ 200,000 as demurrage

02 Apr 2022

  • $ 15,000 in demurrage charges per day
By Skandha Gunasekara The Ceylon Petroleum Corporation (CPC) has to pay approximately $ 200,000 in demurrage charges for a fuel shipment laying off the Colombo coast awaiting payment to unload the consignment, The Sunday Morning learns. Ministry of Energy Secretary K.D.R. Olga told The Sunday Morning that at least $ 15,000 had to be paid per day in demurrage charges to the ship that has been waiting since 23 March. “We are hoping to make the payment for this shipment this coming week. It has been waiting for some time now, since 23 March. We have to pay demurrage charges as well and it is usually between $ 15,000-$ 18,000 per day for demurrage charges,” Olga said. She noted, however, that a shipment of diesel had arrived using the Indian credit line at the Colombo Port yesterday (2) and that the fuel would be discharged today (3). “A consignment of 40,000 MT of diesel arrived at the port yesterday. It will be discharged shortly to fuel sheds as well as 12,000 MT for power generation. It is the second consignment using the Indian credit line,” she said, adding that it had been procured at a cost of $ 38 million. She said that there were another two ships with crude oil in the open seas but they were at the risk of turning back if payments were not made. “We are trying to secure these two as well next week. There is speculation that these two will return to the place of origin if we are unable to secure them,” Olga explained. $ 155 m of $ 500 m Indian credit line already used for fuel Ministry of Energy Secretary K.D.R. Olga told The Sunday Morning that Sri Lanka had exhausted $ 155 million of the $ 500 million secured as a line of credit from India to purchase fuel.  Earlier this year, Sri Lanka negotiated a $ 500 million credit facility from India for urgent fuel purchases following the foreign currency shortage, which constrained essential imports. Sri Lanka has sought similar lines of credit and assistance from China and several Middle Eastern countries.     


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