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Shipping company demands Rs. 89 mn demurrage charges

8 August 2014 02:40 pm - 12     - {{hitsCtrl.values.hits}}

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Ceylon Petroleum Corporation (CPC) Jathika Sewaka Sangamaya Branch Secretary Ananda Palitha said today an Indonesian shipping company had demanded Rs. 89 million from the Ceylon Petroleum Corporation (CPC) as demurrage and urged the CPC  to reveal whether it was going to pay it, as it claimed earlier that such a fee would not have to be paid.

“The government earlier claimed that CPC would not have to pay a late fee and said insurance companies would pay, if there was any late fee. But as we are aware, those companies will not pay them. It is the poor people who have to pay them and are burdened due to these unnecessary losses,” Mr. Palitha said.

He said another two shipping companies were preparing to send letters to the CPC demanding demurrage by next week.

Mr. Palitha said the pipe-line carrying crude oil to the Sapugaskanda oil refinery which broke down on May 24 had not been repaired completely as yet despite being replaced with an old pipe-line temporarily.

“The pipe-line ordered from a private company has not been received yet and the process of pumping crude oil with the old pipe-line has been very slow,” he said.

Mr. Palitha said the Sapugaskanda refinery was not operating at its full capacity even though it had resumed operations on July 20.

“The oil storages at the Sapugaskanda refinery are full by now and it will take more time to clear the storages as the refinery is not operating at full capacity. This will result in the oil tankers having to anchor for more time to unload crude oil and thus will have to pay demurrage,” he said. (Ajith Siriwardana)

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  Comments - 12

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  • SL Friday, 08 August 2014 04:49 PM

    need a JVP gvt

    tony Friday, 08 August 2014 05:29 PM

    WE ARE IN FOR ANOTHER FUEL SURCHARGE ADDED IN ALL OUR BILLS

    kane Friday, 08 August 2014 08:27 PM

    Everything seems to be slow or at a standstill in SL under the present managment of the govenment corporations, boards, departments and so on. What a colossal waste of the public funds and inefficient management by unqualified political appointees. Where is the patriotism when in comes to corruption?

    Manel Friday, 08 August 2014 09:43 PM

    Earlier it was the "HEDGING" deal by a VIP's relation and now it is the demurrage payment because of inefficient management of CPC by an inefficient Govt. Poor voters have to pay through their noses!!!

    gobbaya Saturday, 09 August 2014 07:29 AM

    masses tighten your belts for another fuel price hike....in the miracle of asia via DM Android App

    Public Saturday, 09 August 2014 02:51 AM

    Very soon the CPC would certainly make the General Public to pay the demurrage costs.

    to editor Saturday, 09 August 2014 08:28 AM

    bro heading says 89million. inside the article its 8.9million via DM Android App

    Devapriya mendis Saturday, 09 August 2014 03:38 AM

    what happened to the end of the world picture painted by these vested interests instigated by bancrupt politicans crying for cheap publicity? did we have have petrolium crisis ? managment handled it accidents do happen mistakes do happen all over the world but these trecharous unpatriotic union leaders should do their job well for the salaries paid rather than cpome before media for the pocket money they get from opposition rogues

    Suq Madique Saturday, 09 August 2014 04:51 AM

    This is a colossal blunder but still for all no heads will roll and the corruption and inefficiency continues for which the public will again be called upon to pay.

    Colombo Man Saturday, 09 August 2014 02:37 PM

    You are not aware we could not purchase LFO 1500 sec. Oil for last whole month and had to use Diesel at higer cost for our boilers. Cost of Petrol is Rs. 90 and selling 162 Diesel 91 and selling 121 per day sale of these two products 76 Million Ltrs. Then the profit ?, but CPC making losses

    Empulze Saturday, 09 August 2014 08:13 PM

    Our honourable minister would pay it out of his pocket as he mebtioned in his statements. via DM Android App

    Sylvia Haik Saturday, 09 August 2014 04:04 PM

    Has the CPC become a bottomless pit for these charlatans. The CPC management's incompetence is either deliberate or astounding as they are supposedly experts in the field and lhandpicked by government. First the one-sided Hedging deal that cost us Rs.Billions and now this.


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