CEYPETCO rejects reports of Sri Lanka paying US$286 per barrel for crude oil

The Ceylon Petroleum Corporation (CEYPETCO) has strongly rejected reports claiming that Sri Lanka paid US$286 per barrel for crude oil, calling the information false, misleading, and harmful to the institution’s reputation.

In a formal clarification, CEYPETCO said crude oil imports to Sri Lanka are carried out only by the corporation for refining at the Sapugaskanda Refinery. It stated that no crude oil shipment imported or contracted by CEYPETCO has been purchased, or agreed to be purchased, at a price anywhere near US$286 per barrel.

The corporation said that following the escalation of tensions in the Middle East, the first crude oil shipment to Sri Lanka is scheduled to arrive on April 17, 2026. It also stressed that none of the crude oil cargoes imported or contracted after the outbreak of hostilities carry such a high price.

According to CEYPETCO, the agreed prices for crude oil shipments arriving after the Middle East conflict are around US$71.99, US$111.62, US$71.81, and US$113.29 per barrel.

The corporation said these prices are highly competitive and favourable when compared with prevailing global market rates.

CEYPETCO further said it has successfully secured crude oil supplies under favourable and competitive terms compared with other market participants, while ensuring the continuity of refining operations and protecting national energy interests.

The clarification was issued under the hand of the Chairman of the Ceylon Petroleum Corporation.

Earlier, the Financial Times quoted HSBC Chief Executive Georges Elhedery as saying that the highest “door-to-door” price he had seen for a barrel of oil delivered to Sri Lanka had reached US$286. The report said this figure included sharply increased costs for shipping, insurance, and logistical risk.

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