Sri Lanka says 'no money to buy petrol', urges citizens not to queue outside gas stations

Sri Lankan Energy Minister Kanchana Wijesekera on Wednesday revealed that the crisis-hit nation is on the edge of running out of petrol reserves and has "no money" to revive its stock. Although two petrol-laden vessels are anchored off the Colombo port for at least two months, the country does not have foreign exchange reserves to pay for it as the economic situation dwindled. Confirming the lack of petrol availability, The Sri Lankan MP further urged exasperated citizens "not to wait in line" outside gas stations for fuel.

"Sri Lanka has no dollars to pay for petrol shipments," Wijesekera said, adding that approximately $53 million is still due to the same vessels for its last delivery in January 2022, as quoted by PTI.

As per reports, the petrol company (the name of which has not been disclosed) refused to dispatch new orders until the last ones were cleared. Although the Central Bank of Sri Lanka has agreed to clear the previous dues, the company will only release the vessel after the latest dues are cleared. "We are yet to source the fund for this purpose," he said, stressing that Sri Lanka, however, has adequate diesel reserves.  

Fuel crisis in Sri Lanka

Apologising for the current crisis on the sidelines of the political turmoil, the Lankan government urged citizens to avoid queues outside petrol pumps. "We are requesting people not to wait in line for fuel. There is no issue with diesel. But please do not stay in line for petrol. We have limited stocks of petrol and are trying to distribute it accordingly for essential services, especially ambulances," the minister said while issuing a warning against stockpiling fuel. Wijesekera informed that Colombo will take three more days to complete the distribution of petrol to fill all stations after the ministry identified 37 viable ways to do so, however, there is no chance to import fresh stocks without opening a letter of credit, he concluded.  

Sri Lanka down to last day of petrol stock: PM Ranil

During his address to the nation, PM Ranil Wickremesinghe revealed that Sri Lanka only has petrol stock for "a single day." The situation arose after Colombo was unable to raise dollars to secure three shipments of oil waiting outside Sri Lankan harbour. Meanwhile, the country's Ceylon Petroleum Corporation (CPC) has now requested the public not to queue up for petrol unless essential, as supplies will be limited. Nevertheless, the normal distribution of petrol is expected to resume on Thursday, May 19.

Sri Lanka crisis

The month-long economic crisis deteriorated following weeks of violence amid the step down of former Sri Lankan Prime Minister Mahinda Rajapaksa. The protests stemmed from widespread hatred against the 'Rajapaksa clan' who have been accused of mismanaging funds and imposing ill-timed taxes. Until last week, the political turmoil intensified compounded by the persisting economic meltdown. At least 9 people have been killed and over 300 injured in clusters of clashes that broke out near the residences of Sri Lankan President Gotabaya Rajapaksa and his brother Mahinda Rajapaksa.

A severe shortage of food, fuel, and other basic supplies followed by the inaction of the 'Rajapaksa clan' has led simmering discontent among 22 million citizens in the island nation to bubble. Sri Lanka currently has an outstanding foreign debt of £51 billion. In the wake of the worst-in-a-decade economic turmoil, Colombo said it will suspend repayment of foreign loans after its foreign currency reserves plummeted below $50 million. Sri Lanka has to pay $7 billion in foreign debts by the end of this year and $25 billion by 2026.

(Image: AP)