Government moots new fuel policy

Import of high engine capacity vehicles to be restricted:

Uditha Kumarasinghe, Irangika Range and Sandasen Marasinghe

KOTTE: Chief Government Whip Minister Dinesh Gunawardena yesterday told Parliament that the Government is formulating a new policy on fuel and petroleum products.

The Minister responding to an oral question raised by UNP Parliamentarian Ravi Karunanayake said most countries have formulated “fuel policies” to face to the present oil crisis.

The proposed policy will also lay emphasis on restricting the import of vehicles which have higher engine capacities.

In order to face the present fuel crisis in the world, a decision has to be taken on certain categories of vehicles which consume more fuel, he said.

The policy formulated by the Government will recommend the categories of the vehicles which can be imported in the future. Therefore, people will not be allowed to import any kind of vehicle according to their own wishes, he said.

Meanwhile, Petroleum and Petroleum Resources Development Minister A.H.M. Fowzie told Parliament yesterday that he has already informed the Indian Oil Company (IOC) that steps could be taken to re-vest the filling stations given to the IOC with the Ceylon Petroleum Corporation (CPC).

The Minister responding to a statement made by JVP MP Anura Kumara Dissanayake on June 5 said kerosene is not sold at the IOC filling stations. In addition, diesel, and petrol are sold at IOC filling stations at a higher price than the CPC filling stations. Therefore, the CPC has to incur the entire loss on fuel.

People have to face severe hardships due to the increase in fuel prices.

Even though diesel prices have been increased, the Government still incurs a Rs. 30 loss on each litre of diesel, the Minister said.

“Therefore, I have already informed the IOC in writing about this situation.”

The Minister said even many countries with a stronger economy have been affected by this oil price increase in the world market. However, the Government has not placed the entire burden on the people. The Government does not increase petrol and diesel prices intentionally.

According to the Minister crude oil prices have been increased rapidly during this period. Following the discussion President Mahinda Rajapaksa had with the Iranian President, we have been given the opportunity to purchase crude oil at a concession of a four months interest free period. The benefit is calculated to be nearly US$ 9 million.

Minister Fowzie said different sections such as the sale of bunker fuel, lubricants and LP gas had been split and sold to the private sector thus depriving a large amount of additional income gained by the CPC.

If this income was available it could have helped to set off the loss and could have further reduced the consumers’ burdens. We have taken steps to launch the business activities again. Steps have already been taken to start bunkering and the CPC is almost ready to start the LP Gas business.

The lubricant business too has been set to commence and the consumer will benefit by the lower prices than earlier. The agro chemicals business was re-commenced an year ago and our farmers have benefited very much.

These initiatives have helped us face the oil price fluctuation in the world market to some extent, he said.

The Minister said the Iranian Government has come forward to help modernise the Sapugaskanda refinery. The income of the Sapugaskanda oil refinery between February and May this year is Rs. 4,300 million.

Once this modernising task is completed, we will be able to produce our entire petrol and diesel requirements of our country. In addition, we will be able to produce 40 per cent of our domestic LP Gas requirements.