Ship Fuel

Nov 24, 2009 (LBO) – A price war among Sri Lankan bunker suppliers in Colombo port is intensifying with some firms saying prices have fallen below cost to loss-making levels.

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Sri Lankan bunker suppliers said prices have come down sharply since the market was opened up and more suppliers came in with the price difference between Colombo and Singapore narrowing considerably.

According to listed prices, which can vary from that actually delivered, the 380CST type of fuel is being offered in Colombo at 475 dollars a tonne compared with 463 dollars in Singapore.

The 180CST type is offered at 480 dollars against 471 dollars in Singapore and marine gas oil at 695 dollars against 632.

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50 dollars in Singapore.

The price difference between bunkers in Colombo and Singapore, a major crude oil refining centre, was as much as 100 dollars a tonne before the Colombo market was effectively opened up.

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Although at least eight suppliers have got licenses to sell bunkers in Colombo port, only three are regular suppliers, Lanka Marine Service, a unit of the John Keells group, Lanka IOC, a unit of Indian Oil Corp., and Lanka Maritime Services, part of the Sri Lanka Shipping group.

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