The Government’s dilemma over enforcing a Supreme Court order to lower the price of petrol worsened yesterday as the Lanka-India Oil Company (LIOC) recorded unprecedented sales after it complied with the order and reduced the price to Rs. 100 a litre.
In marked contrast to the actions of the Indian-owned company, the state-owned Ceylon Petroleum Corporation (CPC) is yet to comply with the ruling and is selling petrol at Rs. 122 a litre. As a result, the artificial shortage of petrol continued countrywide yesterday with almost all CPC fuel distribution outlets remaining closed.
LIOC Managing Director Suresh Kumar said yesterday a copy of the Supreme Court determination was delivered to him on Friday afternoon. “It is an order from Sri Lanka’s highest court. We had to comply with it,” he said. Mr. Kumar added that he had met Petroleum Resources Ministry Secretary W.B. Ganegala to apprise him of the LIOC’s decision.
Non-Cabinet Media Minister, Lakshman Yapa Abeywardena, a spokesman for the Government, told The Sunday Times there would be no change in the price of petrol distributed by the CPC. He said the matter would be taken up at the weekly Cabinet meeting on Wednesday and not earlier.
The Government yesterday utilised the services of the Police to persuade CPC fuel stations to replenish their stocks and sell petrol at Rs 122 a litre. They have also been warned by CPC officials that their dealerships would face cancellation if stocks were not immediately
obtained. Instead, most distributors said yesterday they were worried they would suffer a loss if the prices changed soon after they acquired new stocks.
Yesterday, the Ceylon Petroleum Common Service Union, a combined body of trade unions, joined in the fray by demanding that the Government should comply with the Supreme Court order. “If the Government does not bring down the price of petrol, CPC distributors will also turn to LIOC to obtain their stocks,” Union Secretary D.J. Rajakaruna warned.
Compounding the issue was the surplus production at the Sapugaskanda Oil Refinery. Officials there warned that the refinery might be forced to shut down until stocks remaining in the tanks were moved out.
Distributors of CPC fuel products were reluctant to obtain new fuel stocks. One of them who spoke on condition of anonymity asked: “What is the use of our buying new stocks, if we cannot sell them?”
“The motorists will go to LIOC outlets where the price is cheaper,” he said. The distributor did not wish to be identified for fears of his dealership being cancelled – a warning which the Marketing Division of the CPC has reportedly issued to its outlets.
Although 73 CPC dealers had placed orders for petrol stocks, they had cancelled them later.
Unions add fire to fuel over new boss
Ceylon Petroleum Corporation (CPC) unions have set a Tuesday deadline for the government to remove the newly-appointed Chairman of the Ceylon Petroleum Storage Terminals Ltd (SPSTL), a subsidiary of the CPC.
The new Chairman, W.B. Ganegala who is also the secretary of the Ministry of Petroleum Resources on Friday visited the premises in Kolonnawa, but employees refused to allow him into the office. The union claimed there was no need for a separate chairman as the CPC chairman could oversee duties of the company which played a vital role in fuel distribution.
They said that having two separate chairmen could complicate the functions of the corporations and they would consider strike action if the new chairman was not removed by Tuesday.
The union leader on Friday also refused to grant Mr. Ganegala time for a discussion, but said they were willing to have a discussion with him at the ministry in his capacity as secretary. | 
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