Following US led sanctions :

World oil prices soar

L.S. Ananda WEDAARACHCHI

World oil prices are soaring following the US led sanctions against Iran, Petroleum Industries Ministry Secretary R.H.S. Samaratunga told a media briefing on Friday at his ministry. He said that the price of a barrel of crude oil had increased by US $ 9 in the past 36 days.

The price of refined oil had also increased to US $ 130 per barrel last weekend. It was less than US $ 120, two weeks ago, he said.

Sri Lanka could obtain its fuel requirements from the suppliers without interruption, but the problem is the soaring prices, the Secretary said.

The only alternative is to be more prudent in the use of fuel due to the current international crisis, he said.

He said that the Government would continue to provide kerosene and diesel at subsidised prices. The Government expends Rs. 41 for a litre of kerosene oil and Rs. 30 for a litre of diesel under the fuel subsidy scheme, the Secretary said. Sri Lanka spent US$ 1,674 million last year to import 139,000 MTs of crude oil. Over 92,916 MTs of kerosene oil and over 298,999 MTs of fuel were imported last year from Iran, UAE, Qatar, Saudi Arabia, India and Singapore, he said.

A national plan to minimise the use of oil, a subsidised scheme for passenger transport and a price hike are considered options to solve the current oil crisis.

Ceylon Petroleum Corporation Chairman, Wasantha Ekanayake, Commercial Manager C.P. Samaraweera, Additional Finance Manager S. Sundaralingam were also present.