Petrol crisis: CPC makes emergency purchases in spot market
The Ceylon Pe t ro l e u m Corporation (CPC) went into making emergency purchases in the spot market as the country was crippled without fuel and rationing introduced until the situation was normalised.
The Sunday Times learns that the fuel crisis broke out after a shipment of petrol imported by the Lanka Indian Oil Company (LIOC) failed to meet the required specifications and was rejected by the CPC.
CPC sources said a shipment that arrived at the Colombo harbour on October 17 had been tested for a second time and rejected on a quality test. The vessel Mt PORM ASTRID thereafter turned back to the Trincomalee port where it remained yesterday.
A substitute shipment due on October 27 has also not arrived. LIOC was not available for comment despite repeated messages. The Petroleum Resources Ministry has directed LIOC not to unload the shipment at Trincomalee.
Thousands taking advantage of the long weekend had to abandon planned visits and city commuters were stranded since Friday as many fuel stations closed down without stocks.
Petroleum Minister Arjuna Ranatunga and his brother, Dhammika who heads the CPC, were also unavailable for comment since Thursday as instructions were passed down to senior officials not to speak to the media on the crisis.
Deputy Minister Anoma Gamage, however, told the Sunday Times that the CPC was expecting a shipment of 40,000 metric tonnes of petrol next Tuesday, but it could be delayed by a day due to sea conditions.
The emergency purchase is for 85,000 barrels of petrol. Registered suppliers have been asked to supply the stocks to CEYPETCO.
She said the Ministry had made “several spot purchases” to overcome the crisis, but could not give details of the prices and quantities.
The emergency purchases included the purchase of 85,000 barrels of petrol to be delivered by Tuesday with prices "negotiable".
"Until the shipment arrives, we are not in a position to provide normal stocks of petrol and will be forced to ration the supply from the CPC. We will be issuing stocks sufficient only for a day," Ms. Gamage said.
She said they were also inquiring to ascertain the reasons for the delay of the ship which was initially expected in Sri Lanka on October 27.
Petroleum sector trade unions have called on the Ministry to carry out an inquiry over the delay of the second shipment which the LIOC had promised and to claim damages.
According to CPC sources, the situation with diesel and kerosene was normal, though with sheds closing there were problems with distribution.
FILTHY RICH