The Ceylon Petroleum Corporation (CPC) has succeeded in preventing the occurrence of another controversy similar to last year’s ‘substandard petrol’ fiasco, when it had detected 7,500 metric tons of imported Jet A-1 fuel oil to be “slightly off specifications” upon inspection at the Colombo Port.
“CPC has imported 20,000 metric tons of Jet A-1 fuel oil consignment from British Petroleum Co. in Singapore out of which 7,500 metric tons were found to be slightly off specifications at the discharge Port of Colombo,” D. Widanagamachchi, Acting CPC chairman said.
In a statement issued today (07), he explained that the CPC had decided not to make use of this consignment of Jet A-1 for the supply to aircrafts and instead decided to use this stock as Kerosene.
He however asserted that the CPC has not suffered any loss due to this situation.
“In the international market, the prices for Jet A-1 fuel and kerosene are more or less equal. However, as a result of the discussion with British Petroleum Co., a discount of US$ 0.25 per barrel was granted to CPC for the substandard 7,500 metric tons,” the CPC chairman said.
The statement further says,
“Jet A-1 fuel and Kerosene are dual purpose fuel. At the Refinery in Sapugaskanda, Jet A-1 fuel is obtained through further processing to meet the specifications of CPC. However, CPC has its own specifications for Jet A-1 fuel imported for the use of aircraft. Jet A-1 fuel can be used as Kerosene but Kerosene cannot be used as Jet fuel.
Since there were several days delay in arriving Jet Fuel tanker to the Colombo harbor, production of Jet A-1 fuel at Sapugaskanda Refinery was maximized by reducing production of Kerosene to meet this situation. There was no shortage of Jet A-1 fuel due to this delay. Further, due to slightly-off specifications, if entire consignment of Aviation Fuel oil was to be rejected there could be a possibility of rejecting 20,000 Mts. If it happened, there could have been a shortage in Jet A-1 oil reserve and reduction in supply of aviation fuel. Therefore, CPC decided to use 12,500 Mts. which were found to be in conformity with CPC standard specifications to be used as Aviation fuel and balance 7,500 which was found nonconformity of CPC standard specifications to be used as Kerosene.
CPC has taken all decisions and approvals as per Technical Specification Committee and Procurement Committee recommendations according to the due process laid down in importation of petroleum products.
CPC will submit a report on this matter to the Hon. Minister of Petroleum Industries.”
(AdaDerana)
