No fuel shortage even if refinery shutdown - CPC

No fuel shortage even if refinery shutdown - CPC

November 8, 2013   07:44 pm

The Ceylon Petroleum Corporation (CPC) says there will be no shortage in fuel supply even if the Sapugaskanda refinery may have to be closed for a few days if the expected tanker does not arrive by November 10.

A trade union affiliated to the oil sector has warned earlier this week that the country’s only oil refinery at Sapugaskanda may have to be shut down by the 10th due to the lack of stocks.

The current crude oil stock is expected to last only till the 10th of this month.

Secretary of the Ceylon Petroleum Corporation (CPC) Jathika Sevaka Sangamaya Branch, Ananda Palitha had said that currently no oil shipments are expected and the existing stocks would end by the weekend.

The CPC has rejected a shipment of Iranian crude oil it said may have been supplied in violation of US sanctions against the Islamic state.

The state-run Ceylon Petroleum Corporation (CPC) said the cargo had been due to be delivered late last month but it had refused the shipment over worries it might be violating US sanctions.

“The CPC refused the shipment due on October 27 because of suspicion it was oil that had been subjected to US sanctions (against Iran),” the company said in a statement.

Sri Lanka had access to limited quantities of Iranian oil before the US tightened sanctions last December.

Colombo, a net importer of oil, turned to Saudi Arabia and Oman for crude as well as refined product from other countries, including Singapore.

The CPC said with the rejection of the suspected Iranian crude oil, the country would be forced to shut down its refinery until new stocks of crude could be sourced.

However, the company said it had enough refined oil to meet local demand.

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