Contaminated jet fuel: no loss to CPC
Ishara MUDUGAMUWA
There is no loss to the Ceylon Petroleum Corporation (CPC) due to the
import of jet fuel that was found to be contaminated since this jet fuel
will be used as kerosene, said CPC chairman Dayananda Vidanagamachchi.
“A stock of 7,500 metric tons imported from British Petroleum in
Singapore was found to be of low quality. The CPC has decided to use
them as kerosene. Prices of both jet oil and kerosene are the same in
the international market and a quarter US dollar discount was given per
barrel for the stock of 7,500 metric tons,” said the chairman.
He said jet fuel and kerosene are dual active fuels in the same group
and jet fuel is produced by refining kerosene further. “Though kerosene
cannot be used as aviation fuel, aviation fuel can be used as kerosene.
So there is no problem of using that stock as kerosene.”
“The CPC had taken measures to limit kerosene production and enhance
jet oil production as there was a delay in receiving jet oil from the
above- mentioned company. The stock of 7,500 metric tons of jet fuel can
be used to fill the kerosene requirement,” Vidanagamachchi said.
He said if the CPC rejected the 7,500 metric tons of contaminated jet
fuel stocks, they will have to reject the entire 20,000 metric tons. “If
we did that there will be a shortage of jet oil in the country and we
will not be able to supply jet oil properly.”
“All decisions regarding the jet oil stock have been taken based on
the the approval of the procurement committee and the tender process.
The CPC will submit a report on this matter to Petroleum Industries
Minister Susil Premajayantha today,” he said. |