The Ceylon Petroleum Corporation issued an order to all filling stations and distribution agents prohibiting them from selling Lanka Kerosene to vehicles, factories, bowsers in bulk to containers and barrels.
The order has been issued under a circular signed by Corporation Chairman Dhammika Ranatunga.
The Petroleum Resources Development Ministry in a press release issued in this regard, said there are two varieties of kerosene available in the market. They are Lanka Kerosene and industrial kerosene. Lanka Kerosene is sold for ordinary use under the government subsidy targeting low-income families and fisheries community.
Lanka Kerosene is red in colour and the industrial kerosene is colourless. The corporation incurred a loss of Rs. 30 on each litre of Lanka Kerosene sold to low-income families and the fishery community at a subsidised rate.
The sale of Lanka Kerosene in 2017 had sharply increased compared to the sales in 2016.
This was because certain filling station owners sold the subsidised Lanka Kerosene in large quantities to other users including business ventures and factories with the intention of making huge profits. Lanka Kerosene was also being used in buses and bowsers by mixing it with diesel. But such activities were illegal. If filling stations were found guilty of resorting to this illegal racket, their agencies would be cancelled.
Business establishments and factories should be supplied with industrial kerosene only. The sale of Lanka Kerosene to petrol and diesel vehicles was also illegal. If any filling station was found guilty of mixing kerosene with diesel with the objective of earning excessive profits, their licences would also be cancelled, the Corporation Chairman had said in his circular to all CEPETCO dealers.
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