Ceylon petroleum corporation loses rs. 23 million daily from kerosene sales
While noting the demand for kerosene has surged in recent
times, Minister of Energy, Udaya Gammanpila said the Ceylon Petroleum
Corporation (CPC) is incurring a daily loss of Rs. 23 million by selling a
kerosene litre at Rs. 33. This, he said, was despite the demand for kerosene
being doubled suddenly.
He said in the past, the use of kerosene was limited but
today, 550 metric tonnes of kerosene were being sold per day for many reasons.
Gammanpila told the Media at the Ministry of Energy
yesterday (9), that there were various reasons for this, including a large
disparity in fuel and kerosene costs.
“A litre of kerosene costs Rs. 77 while a litre of petrol
costs Rs. 111. As a result, not only are manufacturing machinery, stoves, and
boats starting to run on kerosene these days, but even some buses, because
running on kerosene is significantly more cost effective than running on
diesel. People use kerosene as an emergency fuel when there is a gas shortage,”
he said.
He further said the use of kerosene stoves instead of gas
stoves for cooking has increased due to the huge price difference between gas
and kerosene, and that kerosene is sold at a concessionary price to compensate
the fishing and farming communities. “However, we will not be able to give such
concessions to industrialists and bus operators,” he said.
Gammanpila said because of this, they had to restrict the
release of kerosene in areas where there are no fishing and farming communities
and that if concessions given to the fishing and farming community are misused
by the business community, they may not be able to extend this concession to
those in desperate need.
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