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Diesel supply: MGO an alternative to diesel?

16 Oct 2022

Some segments of the logistics sector and export industries in Sri Lanka have resorted to using Marine Gas Oil (MGO) as an alternative to diesel in heavy machinery and heavy vehicles, The Sunday Morning learns. The usage of MGO had begun during the height of the fuel crisis, when diesel was not available in the market for several weeks. A senior official at the Ministry of Power and Energy told The Sunday Morning on condition of anonymity that during the height of the fuel shortage, some industrial sectors and logistics companies had purchased MGO from bunker operators to power generators and heavy vehicles, such as container haulers, to sustain operations. When The Sunday Morning spoke to Sri Lanka Logistics and Freight Forwarders’ Association (SLFFA) Vice Chairman Channa Gunawardena, he confirmed that some in the industry had opted to purchase MGO from private suppliers to run heavy commercial vehicles and generators as diesel had not been available. However, Gunawardena stressed that the situation had improved significantly, pointing out that the diesel quota system issued for industries and logistics companies remained a key constraint in planning mobility and freight services. The Ceylon Petroleum Corporation (CPC) yesterday (15) denied that the State petroleum supplier had issued MGO to the market.  CPC Managing Director Susantha Silva told The Sunday Morning that the CPC had only issued auto diesel and super diesel, which were the two specified diesel varieties for the local market. “The CPC has never issued any other variant of diesel than what is regulated. We have worked hard to maintain fuel quality. MGO is not issued by the CPC to local markets. MGO is, however, stored for bunkering operations by private parties in the maritime industry,” Silva stressed. – By Asiri Fernando


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