by Hiran. H. Senewiratne
This year’s oil import bill is estimated to top US$ 5 billion as a result of the increase of world oil prices and currency fluctuations, petroleum sector sources indicated.
Last year, the cost of oil imports hit a record high of US$ 4.63 billion, Deputy Secretary to the Treasury S.P. Attigala of the Department of Fiscal Policy of the Ministry of Finance and Planning said.
He hoped that the price stick will result in a decrease in the petroleum consumption pattern and offer some relief on the fiscal side until the situation becomes stable.
Last year’s oil import bill was up 53.4% from the previous year’s US$ 3.10 billion, the statistics reveal.
Sri Lanka will take a double blow from the global increase in oil prices alongside the depreciation of the rupee against the dollar.
In the context of the trade embargos faced by Iran, Sri Lanka’s main oil supplier, government officials are now in crucial talks with some oil producing countries.
The average crude oil import price last year stood at US$ 108.59 per barrel against US$ 79.52 paid in 2010.
The import of a record number of motor vehicles in recent years has compounded the problem. Vehicle import cost in 2010 hit US$ 20.22 billion against the previous year’s US$ 2.16 billion and US$ 3.36 billion in 2008.
Several vehicle dealers anticipate a dip in sales due to high fuel cost and the depreciation of the rupee making imports more expensive. Officials hope that this would afford some relief to the increasing petroleum import bill.
There had been some hopeful signals of the possibility of an oil strike here following explorations in the Gulf of Mannar by Cairn Lanka.
The company has announced that gas and condensate discoveries have been made.
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