Govt. stops purchasing oil from Iran

Thursday, 23 February 2012 00:47 -     - {{hitsCtrl.values.hits}}

The Government says that oil imports from Iran have been stopped and that purchases are being made from alternative sources. Petroleum Minister Susil Premajayantha has told parliament that Sri Lanka has commenced purchasing Arabian Light Oil instead of Iranian Light Oil.

He has said that Sri Lanka could no longer purchase oil from Iran due to the oil embargo placed on that country. According to Premajayantha, the Government did not have any other alternative but to increase local fuel prices and the fuel prices would be reduced once global oil prices start to decline.

On Wednesday Arabian Light oil rose 0.4% to trade at US$ 121.19 a barrel. The Minister has explained that the losses incurred by the sale of fuel in the local market were very high until the recent price revision.

The Government had incurred a Rs. 48 loss from the sale of a litre of furnace oil, Rs. 30 from a litre of kerosene and Rs. 26 from a litre of diesel. (Colombo Page)