brand logo

Fuel crisis: Sapugaskanda back online tomorrow

30 Jan 2022

  • Ratings downgrade affects crude oil purchases
By Uwin Lugoda The Sapugaskanda Oil Refinery is to recommence operations tomorrow (31) after almost a month-long hiatus due to limited crude oil supplies, The Sunday Morning learns. According to Energy Ministry Secretary K.D.R. Olga, the oil refinery will commence work tomorrow, having received a supply of crude oil last week. “We are definitely starting the refinery again tomorrow. We received our crude oil shipment last week on 27 January and we were unloading it in the last few days,” said Olga. The Sapugaskanda Oil Refinery was closed on 3 January due to the shortage of US Dollars preventing the country’s purchase of crude oil. According to the Ministry, the Ceylon Petroleum Corporation (CPC) has since made preparations to restart the country’s only oil refinery by procuring the required crude oil from a Singaporean supplier that was awarded the long-term contract for the supply of crude oil to Sri Lanka from 25 January. Initially, the refinery was supposed to recommence functions last Thursday (27). However, while the Letters of Credit (LCs) and other necessities were completed for the purchase of crude oil, there was a delay in the shipment reaching Sri Lanka. “The Singaporean ship carrying the crude oil stock for the refinery was delayed by about three days and was only due to travel close to the Colombo Port on 26 January,” the Energy Ministry had said in a statement issued in this regard. The Ministry explained that it had also become difficult to buy crude oil on a credit basis as Sri Lanka’s credit rating had fallen. Sri Lanka for the first time shut down the refinery on 15 November due to a shortage in crude oil supply. The refinery resumed operations on 7 December The Sapugaskanda Oil Refinery supplies 14% of the country’s petrol and 29% of its diesel requirements.  


More News..