Fuel purchases- CPC incurs Rs.5,8 Mn loss on spot tenders: JVP

2017-12-05 20:15:08

JVP MP Nalinda Jayatissa said today the Ceylon Petroleum Corporation (CPC) had incurred a loss of Rs.5,838 million because of the purchase of fuel on spot tenders between August 23 and November 3 this year.

He said that the CPC had purchased 12 consignments of fuel on spot tenders because the Petroleum Resources Development Minister had failed to submit the Cabinet paper to purchase fuel on long term tenders.

"The decision of the stock review committee chaired by the subject minister, to purchase fuel on term tenders for 2017 and 2018, was approved by the technical evaluation committee. However, as the minister failed to submit the Cabinet paper on time to make the approved purchase, the CPC had to purchase 12 fuel stocks on spot tenders, resulting in a loss of US$ 38 million," he said.

Minister Arjuna Ranatunga said they wanted to change the system adopted by the previous government, which had offered the tender to a single person, whereas 83 bidders had been registered.

He said a committee was appointed to change the old methodology and added that a mechanism to purchase fuel on long term tenders would be established by March next year.

However, the MP said if the previous system was changed for the better, it should have been beneficial for the country, and said that instead, it had incurred a loss. (Ajith Siriwardana and Yohan Perera)

  Comments - 12

  • Chryshan K. Tuesday, 5 December 2017 22:01

    Oh making this huge loss is the benefit to the country.

    Reply : 0       6

    sarath Tuesday, 5 December 2017 23:29

    we wan't to tell you regarding this petroleum co. is a fully corrupted. place. every body in sri lanka knows about this corruption place.they play with the body takes responsibility.this place, some corrupted officers playing muddy place.that's why spot tender procedure they are following.

    Reply : 0       4

    Dee Tuesday, 5 December 2017 23:30

    Yes. Now that momentum is dying we need another 'deal' . A 'hedging deal '.

    Reply : 0       6

    Neil Tuesday, 5 December 2017 23:42

    Are you happy now Anura?

    Reply : 4       3

    Ram Wednesday, 6 December 2017 01:22

    The benefit accrued to a few in the country. Who are they? Your answer is good as mine.

    Reply : 0       6

    Lord Wolfstein Wednesday, 6 December 2017 09:25

    For the good of Sri Lanka it would be if international oil companies were allowed free access to the market of Sri Lanka, including the opening of their own petrol sheds.

    Reply : 2       1

    Libtard Wednesday, 6 December 2017 13:16

    yeah like we have loads and loads of foreign reserves for foreign companies to take home. Just stop this liberalizing nonsense. If liberalizing if the solution for all problems Africa should be developed by now.

    Reply : 1       2

    voter Wednesday, 6 December 2017 09:44

    This is not a new practice. Even during the previous regimes they resorted to buying through spot tenders. This is the easy way of earning a corrupted buck on the sly. Although CPC has a storage capacity of over 90,000 Tons they have in store only around 30,000 - 50,000 tons. this allows them to easily buy from spot tenders stating the urgency through companies based in Singapore at higher rates keeping a commission.

    Reply : 0       1

    Mohamed Niyas Wednesday, 6 December 2017 10:15

    Title of this news item is misleading. It says 5,8 Mn instead of 5.8 billion. US$ 38 million is obviously not 5.8 Mn. Request to do the correction asap.

    Reply : 0       2

    fareed Wednesday, 6 December 2017 11:39

    Sometimes people are making immature claims and JVP is one of them. The oil market, commodity market, bond market and some other markets do move according to the condition and situation and events taking place where these are the factors decide the market move. So what you couldn't buy yesterday could be a loss in billions or could be a profit in billions. So stop calling it a loss or profit..JVP and the JO are really immature.

    Reply : 2       0

    lkboy Wednesday, 6 December 2017 12:49

    So the rogues and crooks are mature?

    Reply : 0       2

    Mohamed Niyas Wednesday, 6 December 2017 13:11

    Mr Ajith Siriwardana ad Mr Yohan Perera, Please correctly the title to read as 5.8 Billion.

    Reply : 0       1

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