Kabir alleges downstream petroleum liberalisation is a mega deal and vested interests at play

Monday, 27 November 2023 01:01 - - {{hitsCtrl.values.hits}}

Urges Govt. to table all agreements with new fuel retailers in Parliament
Says with cost reflective pricing, CPC made Rs. 106 b profit in first nine months and so would others
Alleges instead of charging a premium tax, the State will get only pittance from new players

MP Kabir Hasim

Main Opposition SJB MP Kabir Hasim last week called for tabling of agreements with new retail fuel operators in Parliament alleging that the country was the loser rather than a beneficiary from liberalisation of the downstream petroleum sector.

“The Power and Energy Minister must in Parliament table all conditions and agreements with the proposed investors/retailers of petroleum products,” MP Hashim said.

He said that SJB wanted a premium per litre charged and conditions for repatriation of profits in dollars. However the agreement was to charge $ 2 million per supplier per annum.

Given three new suppliers approved, the revenue is a mere pittance of $ 6 million per annum,” Hashim charged.

He told Parliament that the state owned Ceylon Petroleum Corporation (CPC) earned Rs. 106 billion January to September 2023 after a radical policy shift to cost reflective prices.

“Anyone could make a profit now. So the three foreign suppliers on the basis of 50% of market share and 150 petrol stations free on gift basis will make a minimum of Rs. 50 billion or $ 160 million and this earnings can be repatriated,” SJB MP argued.

At a time when there is an acute dollar crisis in the country, and there isn’t any hard tangible investment by these companies except bring oil and selling in Sri Lanka without any conditions, the idea of repatriation in dollars without a premium or tax charged by the Government looks like a making of mega deal and vested interests at play, MP Hashim charged.

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