Low quality crude has resulted in 22% drop in diesel production

By Shiran Ranasinghe

Diesel production at the Sapugaskanda Oil Refinery has dropped by 22% due to the low quality of crude oil imported through Coral Energy Company, a senior CPC official said.

Senior CPC officials had repeatedly asked the Ministry of Power not to import crude or refined oil through Coral Energy.

The CPC official said that Sri Lanka paid a higher amount for Coral Energy than other suppliers.

“The Minister and the Ministry insist that we pay more because established companies don’t want to work with us. However, we pay most of these shipments before they are unloaded. The government is using the crisis to make a profit,” he said.

The CPC official said that the current crude oil produces more furnace oil, compared to the oil previously used.

“Different crude produces various fuels in different quantities. This crude produces more furnace oil that can be used for electricity generation. The demand for furnace oil is now low because we produce more electricity through hydro power,” the official said.