The State-run Ceylon Petroleum Corporation (CPC) will enter the Liquefied Petroleum Gas (LPG) through the utilization of by-products from it’d refinery. The relevant proposal was submitted by the by Energy Minister Udaya Gammanpila was approved by the Cabinet Ministers this week.
CPC will be third thirs supplier of the LPG market apart from Litro and LAUGFS. The Sapugaskanda refinery owned by the CPC produces 5% of the country’s LP gas demand and a feasibility study is now underway to set up a new refinery with a capacity of 10,000 bpd.
The formation of the new firm would enable the Government to provide LPG at a cheaper price, which is also the objective of the Government. Through the implementation of this joint venture, it is possible to procure LPG Rs. 125-130 cheaper than the prices at present, after evaluating and amending the inefficiencies at both LPG companies.
Pro-Litro activists have vehemently opposed the new venture, saying it would have disastrous financial impact. Instead they have suggested that the Government should take over or lease the LAUGFS LPG storage terminal in Hambantota.
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