The Ceylon Petroleum Corporation (CPC) has banned bulk sales of Lanka kerosene oil since some dealers are exploiting the subsidized facility, the Ministry of Petroleum Resources Development has announced.
CEYPETCO Chairman Dammika Ranatunga issued a circular today to all Kerosene oil distributors, according to the Ministry of Petroleum Resources Development.
The CEYPETCO distributes two kinds of kerosene -Industrial Kerosene and Lanka Kerosene to the market. Lanka kerosene is red in color whilst industrial kerosene is colorless.
Lanka Kerosene oil is issued to low income community and fishing community at subsidized prices as a government concession. However, it has been revealed that the consumption of Lanka kerosene oil has increased in comparison to the sale of kerosene in the final quarter of 2017.
The Ministry said that the issuance of kerosene oil to commercial and industrial factories by certain filling stations with the aim of gaining high profits, usage of kerosene to buses and bowsers and selling kerosene oil mixed with diesel have been identified as the main reasons for the increase in consumption.
However, the CEYPETCO emphasized that such acts are unlawful and the license of such distributors will be suspended.