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Lives at risk as kerosene is pumped illegally into private bus tanks
View(s):The widespread practice of buses and other commercial vehicles using kerosene mixed with diesel is posing a high risk to passengers in addition to causing heavy losses to the Ceylon Petroleum Corporation (CPC), officials and bus operators warned.
In order to increase profits, private bus companies are putting kerosene oil, which is heavily subsidised for low-income groups, into their tanks. Other culprits misusing the kerosene subsidy for commercial purposes include lorries, tippers and industrial plants.
CPC Chairman Dammika Ranatunga said the Minister of Petroleum Resources Development aims to resolve this issue soon through a cabinet paper. This would strengthen the CPC’s hand to obtain the resources to monitor and track down misuses and take stern action.
Kerosene was subsidised for the benefit of low-income households, fishermen and farmers, who rely on the fuel for their activities. The kerosene subsidy cost government Rs. 5.46 billion last year and Rs. 2.14 billion for January and February this year.
Up to 50 per cent of private buses are running partly on kerosene, Private Bus Owners’ Association President Gemunu Wijeratne revealed. He said the practice meant bus operators risked losing their insurance in the event of an accident. “Currently there is unlimited insurance on bus passengers but the passengers may lose the benefit if the insurance companies follow a strict policy,” he said.
Kerosene oil was more inflammable than diesel and therefore posed a high risk with an increased chance of engines catching fire. “This is dangerous for the passengers on board,” Mr. Wijeratne said. “The insurance companies would refuse to pay for damages as the buses are registered as a diesel vehicle and the use of kerosene is a conscious breach of regulations. The government has to take immediate action.”
Mr. Nimal Perera, the Director of the Sri Lanka Energy Managers Association (SLEMA), which promotes sustainable energy management, said that despite kerosene being a cleaner burning fuel than petrol or diesel, and containing lower sulphur, mixing the two would damage vehicle engines.
“This would result in a heap of waste engines that would pollute the environment, and the need for replacement engines also poses a threat to the environment and the economy,” he said. Mr. Perera added that using a kerosene mix required buses to accelerate harder, increasing the chances of accidents occurring.
An official at the Department of Motor Traffic said the mixing of the two fuels was a violation of regulations and the department had asked the ministries of petroleum and transport to put a halt to this. The Secretary of the Ministry of Transport, Mr. G.S Withanage, said his ministry had received no request.
CPC Chairman Ranatunga said a decision had to reflect the interests of all and any compromise had to be as fair as possible. “We are in talks with the Ministry of Fisheries and certain pradheshiya sabhas to discuss the possibility of a slight increase in Lanka Kerosene prices to discourage bus drivers and other abusers from the product without it drastically affecting the ones in need of the subsidised price,” Mr. Ranatunga said.
“So, while we decide on a feasible tax policy, the immediate response will include a monitoring of gas stations that pump kerosene into diesel vehicles, and cancelling their licence if need be,” he said. He said there was a hotline (0115455130) in place so that anyone who spotted this activity occurring could make a complaint straightaway.
Professor Sunil Chandrasiri, an economist attached to the University of Colombo, said tax policies distorted market prices and had created the problem currently facing authorities. “The actual cost difference between diesel and kerosene is marginal, and the double rate for diesel is due to taxes and subsidies. I believe the government should allow the forces of demand and supply to determine the prices,” he said.
Prof. Chandrasiri said this would encourage donor companies to invest more in the petroleum industry as they supported free-market economics.