The Finance Ministry finally extended tight fuel consumption guidelines to State sector business undertakings and statutory bodies this week that were earlier clamped on Ministries and Departments about a month ago.
The new circular dispatched on July 28 to Chairmen of Corporations, statutory boards and Government owned companies including State banks is also more innovative in that instead of simply cutting down the quantity of fuel issued to top officials in these institutions to run their official vehicles the new directive has directed the release of cash to them in a lump sum each month to purchase fuel.
A top Treasury official said yesterday that the intention was for them to use less fuel and the saving thus utilized by them could be used for other purposes.
Under the new dispensation which comes into effect from this month a Chairman of a Corporation who earlier drew 180 litres a month was now entitled to draw a monthly fuel allowance of Rs.20,000 in case of a petrol vehicle and Rs.14,000 for a diesel vehicle. At Rs. 157 per litre the Government earlier incurred (157 x 180) Rs. 28,260 on a Chairman for fuel each month, so from this month it saves more than Rs. 8,000 from the fuel bill of the head of each Government owned business undertaking and statutory board. With the cash allowance in their hands, the Chairman and other top executives are unlikely to spend so much on fuel as they can now help themselves to what is saved from the allowance.
The new fuel allowances that the other top officials are entitled to are: Rs.18,000 or Rs.12,000 for a Chief Executive Officer/ Executive Director, Rs15,000 or Rs. 10,000 for Chief Operations Officer/Deputy General Managers/ Functional Heads or Officers in equivalent capacity and Rs. 12,500 or Rs. 8,000 for any other officer entitled for fuel allowances. Earlier these categories were entitled to fuel allowances of 150 litres, 120 litres and 100 litres.
“Fuel entitlements specified hitherto in quantity should be replaced by above values in order to ensure that all users become cost conscious particularly in the context of rising oil costs,” Treasury Deputy Secretary Lalith de Silva has stipulated in this circular.
In instances of them having to undertake official visits outstation, such additional fuel requirements must be personally authorized by the head of the organization. The use of official drivers on holidays too has been restricted.
“The payment of overtime or combined allowances to drivers on private travelling of officers entitled to official vehicles should not be a financial burden to the institutions. Such expenses should be borne by the officers concerned,” Mr. de Silva said.
Top officers have also been barred from using vehicles in the pool in addition to each officer’s assigned vehicle and where an officer functions in more than one post he is entitled to draw only the fuel allowance of his substantive post. “However, with the approval of the Chairman or Chief Executive Officer, additional fuel can be obtained for special official travel pertaining to such additional post subject to the maximum limit prescribed for the particular post,” the circular said.
Group transport provided by some of these institutions to their employees too has been confined to a maximum distance of 50 km up and down from the office.(RA) | 
E-mail