In a bid to ward off a possible fuel-related crisis due to the widening conflict in the Gulf, the government, through the Ceylon Petroleum Corporation (CPC), is in talks with India and China for oil purchases, an official said.
Oil prices reached almost US $120 a barrel on Monday amid fears that the conflict would cause lengthy disruption to energy supplies from the Middle East, but dropped back to around $93 yesterday.
The price of oil has fallen sharply after U.S. President Donald Trump said that the war involving Iran would come to an end “very soon.”
However, Sri Lanka is bracing for any eventuality in case an emergency occurs.
An official of the CPC told the Daily Mirror that discussions had been initiated with the authorities of both India and China to secure purchases in case of an emergency crisis in the world as far as oil distribution is concerned.
The official said these would be government-to-government purchases.
Asked why the government implemented a non-scheduled price revision, he said it was done for two reasons – to discourage demand amid anticipatory price hikes and to avert a bigger price hike at the next monthly revision.
“If we do not increase the prices now, we will have to increase by a bigger margin next time. Then it will be a shock to people. It will even result in price hikes of other items,” he said.
However, he said the current prices still remain lower than the rates that prevailed before September 2024.
“Logically, there is no need for bus and three-wheeler fare hikes,” he said.
After the eruption of war in the Middle East, Iran, in response to attacks by the United States and Israel, blocked the Strait of Hormuz which is responsible for around 20 percent of global oil supply.
U.S. President Donald Trump has vowed that Iran will be hit 20 times harder if it continues with the blockade. Iran has said it will not open the Strait of Hormuz for trade no matter what.