Energy Minister assures sufficient stocks of fuel for a week

Thursday, 20 January 2022 00:15 -     - {{hitsCtrl.values.hits}}

  • Confirms 10,000 tons of diesel will be supplied to CEB for power generation
  • Denies claims of substandard oil imports, says no complaints received
  • Insists on making formal complaints without ranting or misleading general public 
  • Suggests quick shift to renewable energy, offshore oil exploration as only long-term solutions to address energy crisis
  • Admits to lack of forex; rules out stockpiling
  • Suggests CEB go for 90-minute power shedding till monsoons, rather than putting country in a blackout by next month 

By Charumini de Silva


Energy Minister Udaya Gammanpila

Energy Minister Udaya Gammanpila yesterday said that fuel stocks sufficient for a week had been purchased with foreign exchange released by the Central Bank and vehemently denied claims that the Government had imported substandard products.

“We purchased 37,500 tons of diesel from the money that was released by the Central Bank on Tuesday, and of that 10,000 tons were ordered for power generation purposes. I have already instructed the Ceylon Petroleum Corporation (CPC) to provide the required diesel to the Ceylon Electricity Board (CEB), which would be sufficient for around eight days,” Minister Gammanpila, who is also a Cabinet Co-spokesman, told the post-Cabinet meeting media briefing yesterday.

He said that every five days, a new shipment comes for petrol, every week a diesel shipment, and every three weeks a jet fuel consignment arrives. 

“This is a repeat cycle,” he added. 

The Minister rejected social media claims that stocks of substandard fuel had been imported to the country.

“The quality of the fuel imported is inspected on a number of occasions. Samples of Octane 92 and Octane 95 fuel are inspected first by an independent expert from the import location, then upon arrival by the CPC or Lanka IOC, followed by officials of the oil storage terminals and finally during the release of fuel stocks from oil tanks,” he explained.

Minister Gammanpila said they had also not received a single complaint from the public pertaining to the circulation of substandard fuel. He called on the people to make formal complaints to CPC rather than ranting or misleading the general public via social media platforms.

Noting that no requests or suggestions have been made to the Cabinet to change the composition of fuel imported to the country, the Minister urged the public not to be worried about claims of substandard fuel.

Nevertheless, he acknowledged that it was possible that fuel stations might add or mix certain substances such as kerosene with regards to diesel in a bid to maximise profits.

Gammanpila said the long-term solution to the energy crisis was via expanding renewable power generation and oil exploration.

In terms of the debates which took place between him and the Power Minister Gamini Lokuge, Gammanpila accepted that the situation could have been solved internally. 

“It was unfortunate to bring it out in public, when the matters could have been sorted out internally. However, the allegations were directly aimed at institutions I am responsible for. Therefore, I had to intervene,” Gammanpila said apologetically.

Separately, the Minister said that the CEB had alleged that CPC had not supplied the necessary fuel for power generation purposes. 

“Over 60% of electricity was generated by hydropower till December and because the capacities fell 38%, the crisis emerged. Earlier, CEB had informed that they did not need oil till the end of January. On 11 January, the CEB told the CPC that it needed 1,500 tons of diesel daily from 13 January. We did not even have stocks or do not have enough foreign exchange to stockpile given the foreign exchange crisis. There is no diesel well to give as soon they ask for it,” he stressed.

He said the in addition to diesel, CPC also provides 2,200 tons of furnace oil daily to the CEB and supplies another 700 tons of diesel to private-run power plant ‘Fujitsu’ as per a signed agreement.

Gammanpila also cautioned: “If the limited foreign exchange is exhausted, to provide electricity 24-hours a day, we will not be in a position to obtain foreign exchange to import oil by the end of February, which would then lead to a blackout. To mindfully use the limited foreign exchange, we might have to shed electricity 90 minutes a day until the monsoon arrives. 

“Even though it is difficult for the general public, it is better than having a sudden power outage of three hours or complete blackout.”

 

COMMENTS