Sri Lanka’s CPC to purchase bunker fuel for all players: Minister

The Ceylon Petroleum Corporation’s refinery in Sapugaskanda can only process a limited grade of crudes such as Iranian light and Murban.

ECONOMYNEXT – Sri Lanka’s state-run Ceylon Petroleum Corporation has been cleared by the cabinet of ministers to re-enter the bunkering business initially by purchasing fuel for smaller players, Petroleum Minister Udaya Gammanpila said.

“The CPC used to make large profits from bunkering which was used to cross subsidize kerosene until Lanka Marine Services was privatized,” Gammanpila told reporters in Colombo.

“The CPC will re-enter the bunkering business. Initially will buy bunkers for all the small players in bulk.”

“Then in the second stage it will enter the market on a competitive basis.”

“It will build up relationships with suppliers.”

The CPC was initially the monopoly supplier of bunkers in Colombo, until the operation was privatized to John Keells Holdings.

Sri Lanka’s CPC currently purchases all aviation fuels and is the sole supplier at airports. It is not clear whether Hambantota port is included in the plan. (Colombo/Feb02/2021-sb)

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