14 000 MT of fuel purchased from Lanka IOC as an emergency purchase has been rejected due to not being of the required standard.
The decision to then purchase the rejected stock as Kerosene has resulted in the Ceylon Petroleum Corporation from incurring a loss of Rs. 49 Million.
According to sources this stock was fuel was purchased from IOC as the shipment of aircraft fuel which was to arrive on December 8 was delayed. However, due to its low quality, it was later decided to purchase it as Kerosene instead.
While a litre of aircraft fuel costs Rs. 80, a litre of Kerosene is a mere Rs. 45. Accordingly, CEYPETCO has now incurred a loss of Rs. 49 Million due to the price difference.
As a result, the corporation has incurred an additional cost of Rs. 35 leading to the loss.
CEYPETCO was also hit with a further loss of Rs. 65 Million as the stock was imported at an additional cost of USD 3 per litre as it was an emergency purchase.
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