Global uncertainty: Sri Lanka to turn to Nigeria for needed fuel
Amid escalating tensions in the Middle East and concerns over further disruptions to the fuel supply chain, Sri Lanka has decided to explore the possibility of importing petroleum products from Nigeria, an official said yesterday, 22nd June.
During the period ending June 20, 2025, crude oil prices rose due to concerns over potential supply disruptions amidst escalating Israel-Iran tensions.
However, gains were capped to a certain extent as investors remained cautious due to mixed signals from the US regarding its involvement in the conflict. Overall, Brent and WTI crude oil prices increased by US $ 1.99 and US$ $ 1.91 per barrel, respectively, the Central Bank said in its weekly economic update last Friday.
A new level of uncertainty has emerged over fuel supply due to U.S. involvement in the conflict.
“We have already instructed our officials to obtain sample products from Nigeria and some other oil-producing countries to be tested in local labs for viability here,” said D.A. Rajakaruna, the Chairman of the Ceylon Petroleum Corporation (CPC).
“This step would be an attempt to stave off any impact on Sri Lanka from disruption to the traditional supply chain,” he added.
According to him, the CPC accounts for nearly 60 percent of the fuel supply, whereas Sinopec, Lanka Indian Oil Company (LIOC), and RM Parks contribute the rest.
Asserting that there would not be any immediate impact in the local market, he said the effect of the current global disruption would be felt by August or September this year.
Meanwhile, Russia has offered oil trading with Sri Lanka. However, Rajakaruna ruled out purchases from Russia because of economic sanctions and political issues involved, though Sri Lanka agrees in principle.
