Sri Lanka looking to Nigeria for oil supplies

Faced with tensions in the Middle East, the Ceylon Petroleum Corporation is exploring the possibility of sourcing African crude, while Russia has also come forward. Meanwhile, a decline in agricultural production is pushing up food prices again.

Colombo (Asia News) – Amid escalating tensions in the Middle East and concerns over further disruptions in the fuel supply chain, Sri Lanka has decided to explore the possibility of importing petroleum products from Nigeria, a major African producer.

Ceylon Petroleum Corporation (CPC) Chairman D.A. Rajakaruna instructed the company’s officials to obtain sample products from Nigeria and other oil-producing countries for testing in local labs and assess local viability.

He explained that this step is aimed at preventing any impact on Sri Lanka from disruption in the traditional supply chain. CPC supplies about 60 per cent of the fuel, while Sinopec, Lanka Indian Oil Company (LIOC), and RM Parks cover the remainder, Rajakaruna noted.

Adding that there will be no immediate impact on the local market, the CPC chairman said the current global disruptions will be felt by August or September this year.

Meanwhile, Russia has also offered to trade for oil with Sri Lanka. However, Rajakaruna ruled out purchases from Russia due to economic sanctions and the political issues involved, although he acknowledged that Sri Lanka would agree in principle.

Concerns over possible oil price hikes in Sri Lanka are aggravating the economic pain caused by a significant decline in agricultural production, with output in key crops such as rice, rubber and coconut falling sharply.

The overall impact is driving up prices in the island nation, with food inflation a growing concern for both consumers and policymakers.

• sri lanka
• oil
• imports
• supply chain
• mideast
• nigeria
• diversification
• russia
• agricultural production
• drop