Thursday Sep 19, 2024
Thursday Sep 19, 2024
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| Power and Energy Minister Kanchana Wijesekara
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Power and Energy Minister Kanchana Wijesekara yesterday confirmed the Cabinet-appointed Sub-Committee has approved entering into agreements with two companies to import petrol and diesel in the long term.
“These agreements are Letter of Award. We have sent them the legal documents and suppliers have also shared their details. People’s Bank will open the Letters of Credit for this purpose,” he told journalists yesterday.
Minister Wijesekera said once the LCs are opened, he will be able to detail the next shipments of petrol and diesel to Sri Lanka.
The Minister claimed the existing traffic for fuel was due to the unexpected rejection to open LCs by the Bank of Ceylon Credit Committee only once the shipment was in close proximity to Sri Lanka that were expected on 9 and 10 June 2022. However, he said the Government expects to access one of the shipments within the next three days.
Minister Wijesekara also said another firm has been selected to supply jet fuel.
“Four suppliers have been given permission to import crude oil based on the proposals put forward, whilst two suppliers have been permitted to import petrol and diesel required for the coming week,” he added.
The Minister also said that statement by Prime Minister Ranil Wickremesinghe about fuel shipments has been shared out of context on social media.
“Certain parties have misinterpreted the Prime Minister’s statement regarding the fuel shipment received yesterday as the last fuel shipment that Sri Lanka will ever be receiving. The fuel shipment which reached Sri Lanka is the final shipment under the Indian Line of Credit and ‘not the final shipment ever’ to reach the country,” he explained.
He also clarified that while a certain sum of the payment for the shipment was through the Indian loan facility, $ 25 million was paid by the Treasury two weeks ago.
Minister Wijesekara said the standards of the diesel shipment will be offloaded following the completion of standard checks.
He was hopeful that the 40,000 tons of diesel stock could be managed and distributed as per the systematic plan, whilst believing stocks will be sufficient until 21 June, though acknowledging the petrol stocks will not be sufficient.
As a long term solution to the fuel shortage, the Minister said they were in discussion to obtain additional $ 500 million via the Indian Credit Line.
He also said the fuel price formula is intact and it will be announced by the Finance Ministry if the Committee decides it is necessary. The price formula reintroduced last month applies every fortnight or monthly to determine fuel prices.
Minister Wijesekera insisted the fuel quota system should be implemented by July, at least as a pilot project to ensure a steady supply. “We do not say that 100% of the quota should be from the registered fuel station but at least up to 60%, while the balance can be sourced from any of the filling stations countrywide. We need another two weeks to implement this system as it is still on test level,” he explained.
Amidst the fuel shortage in the country, eight people have died as of yesterday whilst waiting in long queues despite adverse weather and hunger.
The Minister said a fuel bowser can carry a load of 6,600 litres, and within the announced fuel limits to vehicles, the load can only supply to 220 vehicles, but over 2,000 vehicles are in queues at some fuel stations.
“I humbly request all motorists to understand and cope with the situation without creating violence at fuel stations. Neither the fuel station owners nor the staff are responsible for the shortage. If we receive information on such violence, CPC will not release stocks to those,” he said.
