Minister and Chairman, main culprits in fuel scam
(Lanka-e-News, September 14, 2008, 6.25 PM) The trade unions of the Ceylon Petroleum Corporation (CPC) accuse that the Minister of Petroleum and Petroleum Resources joined by the Chairman of the CPC are purchasing fuel against tradition of basing on the recommendations of the Operations manager of Kolonnawa fuel stores and the Marketing Manager of CPC.
The trade unions allege that the CPC is storing excess stocks of fuel without considering the local demand and the fluctuation of prices in the world markets. They charge that the purchasing of 130,000 metric tons of fuel and storing them in Muthurajawela when the price was as high as US $ 146 was conducted not for the interest of the country but for acquiring commissions. They point out that the price of a barrel of crude oil has dropped to US $ 99 and question why the advantage is not given to the consumers.
Daily consumption of fuel in the country is 4300 metric tons. Kolonnawa stores complex distributes around 2000 metric tons while Muthurajawela stores distribute around 2000 metric tons. Accordingly, the amount of fuel distributed each month is 50,000 metric tons. An oil tanker arrives in Sri Lanka once in 15 days usually.
Storing such a huge stock of fuel in Muthurajawela is a threat to security too, the trade unions point out. Muthurajawela fuel storage is situated in an unsecured area close to sea and it is prone to terrorist attacks. Fuel is pumped to this complex from a buoy in Uswetakeiyawa. The pumping is stopped on 6 PM due to security concerns and the ship is taken to deep sea. Trade unions point out that a three day delaying fee is paid to the shipping company due to this process and there is a commission deal behind this.
A liter of petrol can be sold at Rs. 95 with tax in accordance with the current world market price of fuel. But since the CPC maintains the old prices without giving the concession to the consumers, the Lanka Indian Oil Corporation (LIOC) that owns a 30% share of the fuel market earns a giant profit by selling fuel at higher prices. The trade union leaders point out that a Rs. 25 a liter surcharge is levied from locally refined fuel as well although the tax was intended to be charged only from imported fuel in accordance with the original gazette.
Exposing the fuel racket in the parliament, United National Party (UNP) MP Dayasiri Jayasekara said that the income of Standard Chartered Bank has risen by 122% due to fuel related transactions. He further said that a cabinet paper had been submitted on August 19 to obtain US $ 500 million loan from Iran at 18% interest to set up a new petroleum refinery. As a condition of this loan, a 20 year tax concession and other compensations have been promised.
14/9/2008
(Lanka-e-News, September 14, 2008, 6.25 PM) The trade unions of the Ceylon Petroleum Corporation (CPC) accuse that the Minister of Petroleum and Petroleum Resources joined by the Chairman of the CPC are purchasing fuel against tradition of basing on the recommendations of the Operations manager of Kolonnawa fuel stores and the Marketing Manager of CPC.
The trade unions allege that the CPC is storing excess stocks of fuel without considering the local demand and the fluctuation of prices in the world markets. They charge that the purchasing of 130,000 metric tons of fuel and storing them in Muthurajawela when the price was as high as US $ 146 was conducted not for the interest of the country but for acquiring commissions. They point out that the price of a barrel of crude oil has dropped to US $ 99 and question why the advantage is not given to the consumers.
Daily consumption of fuel in the country is 4300 metric tons. Kolonnawa stores complex distributes around 2000 metric tons while Muthurajawela stores distribute around 2000 metric tons. Accordingly, the amount of fuel distributed each month is 50,000 metric tons. An oil tanker arrives in Sri Lanka once in 15 days usually.
Storing such a huge stock of fuel in Muthurajawela is a threat to security too, the trade unions point out. Muthurajawela fuel storage is situated in an unsecured area close to sea and it is prone to terrorist attacks. Fuel is pumped to this complex from a buoy in Uswetakeiyawa. The pumping is stopped on 6 PM due to security concerns and the ship is taken to deep sea. Trade unions point out that a three day delaying fee is paid to the shipping company due to this process and there is a commission deal behind this.
A liter of petrol can be sold at Rs. 95 with tax in accordance with the current world market price of fuel. But since the CPC maintains the old prices without giving the concession to the consumers, the Lanka Indian Oil Corporation (LIOC) that owns a 30% share of the fuel market earns a giant profit by selling fuel at higher prices. The trade union leaders point out that a Rs. 25 a liter surcharge is levied from locally refined fuel as well although the tax was intended to be charged only from imported fuel in accordance with the original gazette.
Exposing the fuel racket in the parliament, United National Party (UNP) MP Dayasiri Jayasekara said that the income of Standard Chartered Bank has risen by 122% due to fuel related transactions. He further said that a cabinet paper had been submitted on August 19 to obtain US $ 500 million loan from Iran at 18% interest to set up a new petroleum refinery. As a condition of this loan, a 20 year tax concession and other compensations have been promised.
14/9/2008
