The Ceylon Petroleum Corporation (CPC) has incurred a loss of Rs50bn within the first seven months of the year, while a loss of Rs94bn was posted last year, sources said.

“The loss was due to power generation, selling diesel and oil at half the cost, and providing kerosene subsidies for the fishing community.” Arabian light crude that is being used at the refinery is not only producing low quality petrol but also contributing to more financial losses to CPC.

Sources say that if the present situation continues the government will face enormous losses from CPC. There is also a decline in the output of petrol and kerosene, it was noted. Dr. Mohammad Nabi Hassani Pour, Iranian ambassador in Sri Lanka said that Iran was informed that the refinery is under repair, and that is the reason why no orders were placed for oil. But Iran is ready to supply crude to Sri Lanka at any time, he said.

A senior official at CPC said that with the Arabian light crude, the refinery is experiencing continuous problems. “Iranian crude is the best.

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