- Ranjan Arun Prasad
- For BBC Tamil
Image source, DAYA PRABHATH GAMMANPILLA’S FACEBOOK
உதய கம்மன்பில
Due to the economic crisis facing Sri Lanka, there is a continuous shortage of essential commodities in the country. Thus, it can be seen that the fuel crisis is currently the main crisis in Sri Lanka.
Motorists wait in long queues every day to buy fuel. Fuel is distributed in Sri Lanka mainly through two companies.
Fuel is distributed through the Ceylon Petroleum Corporation and the Sri Lanka IOC. Last month alone, the IOC raised fuel prices on two separate occasions. However, the Ceylon Petroleum Corporation has so far been distributing fuels at the old prices.
Due to the high fuel cost to the IOC compared to the Ceylon Petroleum Corporation, people are waiting in line to buy fuel at the petrol stations owned by the Petroleum Corporation.
Thus, vehicles are constantly waiting in queues at petrol stations owned by the Petroleum Corporation and its affiliates.
Image source, YUGESH NATHAN
Gas station
According to Energy Minister Udaya Kamanpila, Sri Lanka has only enough diesel for the next four days.
He said the ship loaded with diesel would arrive in the country tomorrow (02) evening.
However, he says that if there is a delay in the issuance of bank bonds due to the foreign exchange problem found in the country, it will be difficult to import the fuel that will be brought in tomorrow.
Udaya Kamanpila said that in particular, the ship will be given the opportunity to unload the fuel within three days from the date of arrival and after three days the ship will have to pay the late payment.
He says he will have to pay a late fee of about $ 8000 – 10000 per day.
Price of fuel purchased by Sri Lanka in the world market
It is reported that the price of fuel in the world market has increased significantly at present.
According to the Sri Lanka Petroleum Corporation, the purchase price of fuel has been released.
Petrol 92 (a barrel) – US $ 109
Petrol 95 (a barrel) – US $ 112
Diesel (a barrel) – $ 114
Despite the high price of diesel in the world market, the price of diesel in the Sri Lankan domestic market is still very low.
However, petrol is being sold at a higher price than diesel.
According to the Ceylon Petroleum Corporation, the loss of diesel is being offset by the use of petrol.
It costs 140 rupees to bring a liter of petrol to Sri Lanka, while the Petroleum Corporation spends 196.32 rupees a liter, including various costs and taxes, including distributor interest, bond payment, pipeline charges, storage charges, transportation costs and taxes.
However, the Petroleum Corporation is currently selling a liter of petrol at a loss of 19.32 rupees and 177 rupees.
However, the IOC can be seen selling a liter of petrol in the market for 204 rupees.
Tax procedures levied on fuel in Sri Lanka
Octane 92 type petrol – 42.48 rupees per liter
Octane 95 petrol at Rs. 63.82 per liter
16.93 per liter of diesel
A liter of super diesel: – 38.73 rupees
Accordingly, the government receives 331 billion rupees a day in tax revenue from fuel alone. According to the Minister in charge of the matter Udaya Kamanpila, 556 billion rupees a day is being lost to the Petroleum Corporation due to this.
He further added that if the tax levied by the government on fuel is abolished, it will be possible to distribute fuel to the people at a lower cost.
Image source, KRISHANTHAN
Gas station
As a part of this, the Minister in charge of the matter Udaya Kamanpila had requested the Finance Ministry on the 18th to abolish the fuel tax.
However, the Finance Ministry has not yet responded to a request made by Minister Udaya Kamanpila.
Fuel required for daily use
Petrol Octane 92: – 3000 – 4800 MT
Petrol Octane 95: – 300 – 350 MT
Super Diesel: – 225 – 250 MT
Auto Diesel: – 6500 – 7000 MT
Is there really a shortage of fuel?
Energy Minister Udaya Kamanpila says there is no shortage of fuel despite waiting in line at petrol stations in Sri Lanka.
However, he also clarified the reason for the current fuel shortage.
That is, ” motorists refuel their vehicles completely for fear of running out of fuel. They will refuel only as previously mentioned. However, they are currently fully filled. Therefore, there is a shortage of fuel at petrol stations. However, the country needs fuel, ”said Minister Udaya Kamanpila.
“People are waiting in line at petrol stations just because there is fuel, and if there is no fuel, people will not be in line,” the minister said.
When will this problem be solved?
According to the Ministry of Energy, there is no shortage of fuel and it is not possible to say exactly when the return day will be.
Meanwhile, Sri Lanka will soon receive an economic package from India to recover from the economic crisis facing Sri Lanka.
While India has agreed to provide an economic package of about US $ 240 billion, it has agreed to provide US $ 1 billion in the first phase.
Accordingly, these funds will be spent on medicine, essential commodities and fuel as soon as they become available to the country.
Following this, Energy Minister Udaya Kamanpila has said that the fuel shortage is likely to be resolved by the end of April.
Image source, UDAYA PRABHATH GAMMANPILLA’S FACEBOOK
Sri Lankan Energy Minister Udaya Kamanpila
Power outage
Electricity generation has been affected due to fuel shortages in the country.
Therefore, the Public Utilities Commission of Sri Lanka has given permission to the Ceylon Electricity Board to carry out daily power cuts.
Accordingly, power cuts of about 3 to 5 hours are being carried out daily.
The situation is worse than the LTTE
Commenting on this, Energy Minister Udaya Kamanpila said, “The country is currently facing a worse situation than LTTE terrorism.
“The problem we face today is worse than LTTE terrorism. I was one of the first to say that the LTTE could defeat terrorism. Today I say.
The major challenge facing independent Sri Lanka is the foreign exchange problem the country is currently facing. Its consequences are worse than LTTE terrorism. The breadth of the challenge is worse than LTTE terrorism, ”said Udaya Kamanpila.
From mid-March to the last week of April, the Sri Lankan government is moving forward with the hope of finding relief through a loan scheme provided by India.