ECONOMYNEXT – Sri Lanka’s state-owned petroleum refiner Ceylon Petroleum Corporation Friday began building new fuel storage tanks with the aim of eventually doubling storage capacity.
The Ministry of Petroleum Resources Development said 10 new tanks with a total capacity of 11,200 metric ones would be built at a cost of Rs. 412 million with priority given to building petrol storage capacity.
New storage capacity would help avoid situations like the recent fuel crisis when there was a shortage of fuel in many parts of the island, it said in a statement.
The government said the shortage arose after delayed shipments and poor inventory management unable to keep up with a spike in demand.
Petroleum Resources Development Minister Arjuna Ranatunga said the new tanks being built in Kolonnawa marks the first time in 40 years that new capacity was being added there.
Petrol consumption had almost doubled since the ethnic war ended in 2009 with demnd increasing about 7% annually, he said.
The new tanks would help increase storage capacity to 60 days, from 30 days now, he said.
(COLOMBO, December 22, 2017)