Plea for steady supply of crude for Sapugaskanda refinery

By Rathindra Kuruwita

The Sapugaskanda Oil Refinery had produced close to 5,000 metric tonnes of low-quality petrol as a result of restarting operations after an extended stoppage, President of the Petroleum General Employees Union Ashoka Ranwala said yesterday.

Ranwala said that a ship carrying Siberian blend crude oil had arrived in Sri Lanka and the Ministry of Power and Energy must pay for the shipment immediately to ensure that the Oil Refinery could carry on without a stoppage.

“We would also ask them to pay without waiting until we have to pay demurrage. The refinery will run out of crude in 10 days and this shipment must be immediately cleared to prevent another stoppage,” he said.

Sapugaskanda Oil Refinery produced high-grade naphtha and furnace oil and those products fed a number of industries, he said.

Ranwala said around 5,000 metric tonnes of low octane petrol were in storage. They were 82 to 83 octane petrol, he said.

“This happened because we shut the refinery for some time. We have repeatedly said that refining is a complex process. You can’t shut down refineries for months, restart and get top quality products immediately. Even a coffee vending machine takes a while to produce coffee with the right blend,” he said.

The world crude prices are dropping and Sri Lanka must use this opportunity to buy crude and ensure that the Sapugaskanda Oil Refinery remained operational.

“Sapugaskanda has so much potential. We produce high quality petrol, diesel, and other by-products like jet fuel. There is a lot of demand for these, and we can earn money by selling them. The government is trying to show that the oil refinery is a white elephant,” he said.