Locally refined petroleum products soon

by Shirajiv SIRIMANE

The government will stop the import of refined petroleum within four years saving over Rs. 30 billion annually. Crude Oil would be locally converted to refined petroleum products with the commissioning of the Sapugaskanda oil refinery.

A Petroleum Corporation official said the Sapugaskanda Oil refinery is over 40 years old and no government has given serious thought to modernise it to meet the present day demands.

President Mahinda Rajapaksa who visited the refinery recently ordered the Minister of Petroleum Industries Susil Premajayantha to go ahead with modernisation project which is estimated to cost US $ two billion. The Ministry also plans to acquire 48 acres for the expansion program to increase their acreage to 208 and land accusation is currently on the way.

"President has succeeded in obtaining a 70 percent loan from the Iranian government for this purpose while the government will pump in the balance money," he said.The feasibility report is expected to be completed next month.

Sri Lanka currently imports 50 percent of Crude oil and 50 percent of refined petroleum products. "With the commissioning of the new plant in four years which would double its capacity Sri Lanka would be able to stop the import of refined petroleum products and save US$ 300 million annually," he said.He said that the benefit of this saving would be given to the public as well in the future and people could expect a reduction of oil prices.