Sri Lanka's petrol stocks about to run dry: Minister

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IANS | 04 Jul, 2022
Sri Lankan Energy Minister Kanchana Wijesekera has issued a stark warning over the country's fuel stocks as it faces its worst economic crisis in more than 70 years.

On Sunday, Wijesekera told reporters that the country had 12,774 tonnes of diesel and 4,061 tonnes of petrol left in its reserves, reports the BBC.

"The next petrol shipment is expected between the 22nd and 23rd (of July)," he added.

A shipment of diesel is expected to arrive at the weekend, however Wijesekera warned that the country does not have enough money to pay for planned fuel and crude oil imports.

He said Sri Lanka's central bank could only supply $125 million for fuel purchases, far less than the $587 million needed for its scheduled shipments.

Wijesekera added that the country owed $800 million to seven suppliers for purchases it made earlier this year.

The latest warning comes after Sri Lanka suspended sales of petrol and diesel for non-essential vehicles last week as it struggles to pay for imports like fuel, food and medicines, the BBC reported.

Experts believe it is the first country to take the drastic step of halting sales of petrol to ordinary people since the 1970s oil crisis, when fuel was rationed in the US and Europe.

The island nation of 22 million people is facing its worst economic crisis since gaining independence from the UK in 1948 as it lacks enough foreign currency to pay for imports of essential goods.

Acute shortages of fuel, food and medicines have helped to push up the cost of living to record highs in the country, where many people rely on motor vehicles for their livelihoods.

Also last week, an International Monetary Fund team concluded a fresh round of talks with Sri Lanka over a $3 billion bailout deal.

While no agreement has been reached yet, the team said in a statement that it had made "significant progress on defining a macroeconomic and structural policy package".

The cash-strapped country has also sent officials to the major energy producers Russia and Qatar in an attempt to secure cheap oil supplies.