Sales of furnace oil, which is supplied to the CEB and industries for power generation, had shot up sharply at present due to increased thermal power generation because drought reduced hydro-power capacity, official sources said.
The severe dry weather patterns and rising domestic power demand have strained Sri Lanka’s national grid, forcing the government to increase costly fuel imports and implement rolling power cuts as a result of periodic shortages.
The CPC has found it extremely difficult to supply furnace oil or Diesel to run thermal power generators at the subsidised price of Rs. 92 per litre as the corporation is now running at a loss of billions of rupees, a senior official of the Power and Energy Ministry said.
Furnace oil is imported for thermal power generation by the Ceylon Electricity Board.
The CPC incurs losses of over Rs. 4 to 5 billion per month from supplying furnace oil at a concessionary price to CEB and several private sector power providers, he added.
Under these circumstances the government is compelled to purchase furnace oil from Lanka IOC or any other international supplier if the CPC fails to supply the fuel to meet the current requirement, he said.
However a Lanka IOC official noted that it has still not received any request from the Ministry of Power and Energy to intervene in the supply of furnace oil or diesel for thermal power generators to address the most serious present power shortages.
Power shortages and rising fuel imports are particularly problematic considering the country’s rising demand.
According to the Ministry of National Policies and Economic Affairs, the country must add between 150 MW and 200 MW of installed capacity annually to meet demand up to 2022.
