Archives

By Ravi Ladduwahetty

The Ceylon Petroleum Corporation has invested Rs. 300 million in refinery alterations and changes in the processing aimed at bringing polluting sulphur content in diesel to a minimal 0.5 percent.

The infrastructure is ready and we can offer this quality of diesel now, though it is required only by the middle of 2003, CPC Chairman Daham Wimalasena told the Daily News yesterday.

The vehicles which want a better quality of diesel should use the product category which has 0.2 percent and this category could also be supplied when necessary, but will be at a higher cost, he said. Responding to a question on agitations of motorists who were making pleas for fuels for Euro2 standards, Wimalasena said that they are making these requests, forgetting that the bulk of the vehicles do not require such high standards. This quality could be provided but the price would be definitely higher, he said. He blamed the Private Bus Owners Association which had belching buses, which he said, was not due to the bad quality of fuel, but due to bad maintenance. This was the reason for the emissions, he said.

The CPC Chief confirmed that the standards specified in the Government Gazette in June 2002 for compliance by January 1, 2003, have already been met by phasing out the lead content which is well ahead of the deadline. We are now marketing two grades of Petrol which is 90 Octane and 95 Octane which conform to Euro 2 standards and there is no dispute regarding petrol, Wimalasena said.

However, the CPC is now making two grades of Auto Diesel which has a 0.5 percent sulphur content and another which is 0.25 percent Sulphur by weight If there is a requirement for our diesel vehicles to meet Euro standards, the CPC can revise our super diesel specifications of 0.05 percent which will inevitably cost more, he said.

Even the World Bank which funded a study on fuel specifications has concluded that diesel with a Sulphur content of 0.05 percent by weight was required only in 2010 and this has been made on an environmental cost/benefit analysis.

Meanwhile, Petroleum Analysts are convinced that the prices of petroleum products will not drastically come down despite the entry of the Indian Oil Company entering the market.

This is doubtful if the CPC is run properly with so much more to be done and also in the light of IOC also wanting to have their profit margins. In addition, there will also be great advertising and marketing costs and this would also have an impact on pricing, they said.

News | Business | Features | Editorial | Security
Politics | World | Letters | Sports | Obituaries |

Produced by Lake House
Copyright 2001 The Associated Newspapers of Ceylon Ltd.
Comments and suggestions to :Web Manager