The Government of India has announced to immediately provide a consignment of diesel to Sri Lanka, which is facing economic crisis. State-owned oil company Indian Oil Corporation is soon going to provide a consignment of 40,000 tonnes of diesel. This will be in addition to the seven monthly shipments of petrol, diesel and aviation fuel being sent to Sri Lanka. According to the information, there has been a sudden huge shortage of diesel in Sri Lanka in the last few weeks, India had requested to deal with this situation. It is being told that there are also problems in arranging shipping for the fuel consignment.
The Oil Ministry and Indian Oil Corporation did not respond to emails sent on the matter. A commerce ministry official said on condition of anonymity that the global geopolitical situation following Russia’s invasion of Ukraine has disrupted the supply chain. “The government and industry are coordinating with each other to resolve issues like availability of shipping facilities,” the official said.
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The Export Import Bank of India (Exim) Bank and the Sri Lankan government on February 2 signed an agreement for a $500 million line of credit for purchase of petroleum products from the Indian side.
The new decision of the Indian government is also important because the Ukraine conflict is causing problems in the supply and prices of fuel in the global market. Due to the war between Ukraine and Russia, crude oil prices have also increased to a record.