Bunker licence holders agree to import and supply jet fuel on urgent basis

• Govt. assures legal clearance to bunker licence holders to import and supply jet fuel in short term
• First shipment is likely in 10-12 days; SL’s daily requirement of jet fuel estimated at 1.2mn litres

By Nishel Fernando

Sri Lanka’s bunker licence holders have reached a consensus with the government to import and supply jet fuel on an immediate basis, as the country’s jet fuel reserves ran dry with Ceylon Petroleum Corporation (CPC) failing to import the required jet fuel, due to the foreign exchange crisis.

In a meeting held with the bunker licence holders Tuesday evening, Ports, Shipping and Aviation Minister Nimal Siripala de Silva assured the bunker licence holders that they are legally cleared to import and supply jet fuel for the short term (next three months), without legislative amendments, to end CPC’s monopoly on jet fuel supply. 

The Cabinet of Ministers on Monday approved a joint proposal to allow the importation, supply and sale of Jet A-1 aviation fuel to the bunker holders registered with the Sri Lanka Ports Authority (SLPA), in order to sustain the aviation services.

The Attorney General’s clearance has also been received for the Cabinet paper. 
The minister noted that the Cabinet approval, which can be interpreted as a government policy decision, grants the bunker licence holders with the required legal clearance to engage in jet fuel trade in the short term. 

Given the time-consuming legislative process to amend the Ceylon Petroleum Corporation Act in order to allow new players into the jet fuel trade, he pointed out that the forex-generating tourism and foreign employment sectors would be adversely impacted in the meantime, if the government were to wait until the legislative amendments.

The minister also instructed Airport and Aviation Services (Sri Lanka) (Private) Limited, CPC, Sri Lanka Customs and other state agencies to extend their complete support to the bunker licence holders to import and supply jet fuel.

Despite the intimidate approval to import and supply jet fuel, it’s likely to take another 10-12 days for the bunker licence holders to bring in the first jet fuel shipment to the country.

According to Airport and Aviation Services (Sri Lanka) (Private) Limited, the current jet fuel reserves have fallen to a bare minimum and it had compelled the Civil Aviation Authority (CAA) to issue a notice advising airlines to carry fuel for their return journeys from Tuesday onwards.

SriLankan Airlines and several other airlines have been forced to fuel their aircraft in the South Indian airports and other destinations, incurring additional costs. Further, several airlines have already reduced their frequencies to Sri Lanka, due to the fuel shortage.

The daily aviation fuel requirement for aircraft arriving in and departing from Sri Lanka stands at approximately 1.2 million litres.