Kanchana Wijesekera, Sri Lanka’s Energy Minister, has issued a stark warning about the country’s fuel stocks as the country faces its worst economic crisis in more than 70 years.
According to the BBC, Wijesekera told reporters on Sunday that the country had 12,774 tonnes of diesel and 4,061 tonnes of petrol in reserve.
“The next petrol shipment is expected between the 22nd and 23rd (of July),” he added.
A shipment of diesel is expected to arrive this weekend, but Wijesekera warned that the country lacks the funds to cover planned fuel and crude oil imports.
He claimed that Sri Lanka’s central bank could only provide $125 million for fuel purchases, far short of the $587 million required for scheduled shipments.
According to Wijesekera, the country owed $800 million to seven suppliers for purchases made earlier this year.
The latest warning comes after Sri Lanka suspended sales of petrol and diesel for non-essential vehicles last week due to a lack of funds to pay for imports such as fuel, food, and medicines, according to the BBC.
Experts believe it is the first country to take the drastic step of suspending gasoline sales to the general public since the 1970s oil crisis, when fuel was rationed in the United States and Europe.
The island nation of 22 million people is experiencing its worst economic crisis since gaining independence from the United Kingdom in 1948, as it lacks sufficient foreign currency to pay for essential goods imports.
Acute fuel, food, and medicine shortages have contributed to record-high living costs in the country, where many people rely on motor vehicles for a living.
Also last week, an IMF team concluded a new round of talks with Sri Lanka over a $3 billion bailout deal.
While no agreement has yet been reached, the team stated in a statement that it has made progress. “significant progress on defining a macroeconomic and structural policy package”.
In an effort to secure cheap oil supplies, the cash-strapped country has also dispatched officials to major energy producers Russia and Qatar.
