Breaking News

Minister suspends fuel payment

04 Jul 2011 - {{hitsCtrl.values.hits}}

Petroleum Minister Susil Premajayantha today suspended with immediate effect the payment for the 20,000 metric tons of petrol that were imported to Sri Lanka which is alleged to be of inferior quality.

The consignment of 90 octane petrol worth US$11.5 million or Rs.1.17 billion was imported from the Emirates National Oil Company in Dubai to prevent a possible fuel shortage after a 10-day breakdown at the Sapugaskanda Oil Refinery (SOR).

“I suspended the payments for the consignment and appointed a three-member committee headed by Power and Energy Ministry Secretary M.M.C. Ferdinando to investigate the deal and report back to me,” Minister Premjayantha said.

The committee comprises Ceylon Petroleum Corporation Marketing Manager Chaminda Samarakone and former SOR deputy General Manager Piyasena Ekanayake.

“The consignment was ordered by the Cabinet Appointed Tender Board (CATB) as usual and had not obtained cabinet approval. The spot purchase by the CATB was carried out as an emergency purchase to off set the looming petrol shortage because of the break- down at Sapugaskanda refinery,” he said.

The CATB was compelled to purchase this particular consignment from another source as the CPC’s regular supplier from India, who supplies about 70% of our fuel requirements, had increased the premium when they realized there was an emergency.

The minister said the storage tanks at filling stations had finished their petrol by the time the new stocks arrived from Dubai and the petrol might have been mixed up with the sludge in the empty tank resulting in the low quality of the petrol.

“However, if I find any official at the ministry or at the CPC had involved in anything suspicious in connection with the import and distribution of the controversial consignment, I will not hesitate to take strict disciplinary action against them,” the minister said.

He said filling stations pumps which were damaged would be repaired by the CPC free of charge and added that fresh stocks of petrol would be supplied to all filling stations.

(SAJ)

Breaking News

Minister suspends fuel payment

Most Popular Articles

More arrests of lawyers, politicians and senior police officers

Former National Lotteries Board Chairperson Shyamila Perera arrested

Girl visited her lover, gang raped by lover and his friends

Historic locomotive move between Kandy and Peradeniya without tracks

Updated World Test Championship standings after West Indies’ record win over Sri Lanka

12-hour water cut in Colombo and suburbs on Saturday

Latest News

Red notice fugitive in Akuregoda double murder extradited from Maldives

Army Commander reviews UN Peacekeeping contingent

Government committed to equipping children with modern skills: PM

Road access restricted in Riverston, Hatton–Nuwara Eliya road partially blocked: DMC

Train services remain suspended on Mannar, upcountry lines: DMC