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Sapugaskanda closure only affects aviation fuel, kerosene production: Gammanpila 

24 Nov 2021

BY Buddhika Samaraweera  The Energy Ministry has informed that due to the temporary closure of the Sapugaskanda Oil Refinery, only the generation and production of by-products such as aviation fuel (Jet A-1) and kerosene have been significantly affected, and that therefore, steps have been taken to import them as finished goods.  Energy Minister Udaya Gammanpila, on 15 November, said that the Sapugaskanda Oil Refinery would be temporarily closed for 50 days as the country’s limited foreign exchange needs to be utilised for the import of other essential items. However, the Ceylon Petroleum Corporation (CPC) Trade Union suggested that this move could drive up fuel-related costs instead of reducing them.  Accordingly, when inquired by The Morning Business about the impact of this temporary closure on the by-products produced at the Sapugaskanda Oil Refinery, Energy Ministry Secretary K.D.R. Olga said that it has only had a significant impact on Jet A-1 fuel and kerosene. “This has had some effect on Jet A-1 fuel and kerosene. Considering the matter, arrangements have been made to import them as finished goods without any shortage,” she added.  In addition, she said that by-products such as furnace oil and chemical naphtha were also manufactured at the Sapugaskanda Oil Refinery, adding that the halt in the production process would not however have a major impact on such products. “Two other by-products of the Sapugaskanda Oil Refinery are furnace oil and naphtha. In fact, naphtha is usually exported. Even local power plants don’t buy naphtha from us. Therefore, it is being exported and the income received by exporting it is less than the cost of production,” Olga explained.  Olga also noted that due to the recent rains, the local power plants are not purchasing furnace oil at present. She said that due to this, a significant stock of furnace oil has been accumulated, and that therefore, the closure of the said oil refinery does not have a major impact on the furnace oil production.


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