News

Further curbs on fuel use as crisis deepens

Subsidies to be offered to vital areas such as public transport
By Bandula Sirimanna

The government may be forced to introduce further curbs on fuel use if it cannot find new sources to obtain crude oil, Petroleum Industries Minister Susil Premajayantha warned yesterday.

As a last ditch attempt, the Ceylon Petroleum Corporation will negotiate directly with state-owned ventures abroad leaving out the middlemen, he said. The move would mean the practice of calling for bids through local agents of foreign suppliers would be suspended, he added.

Mr. Premajayantha said the curbs to be introduced were yet to be determined. In a bid to ensure the measures had the minimum impact on the public, there would be a subsidy scheme for key sectors like public transport.

Since oil supplies from Iran accounts for nearly 93 per cent of Sri Lanka’s crude oil imports, the country is struggling to find other sources as US sanctions relating to deals with Iran are to come into force in June.

Therefore Sri Lanka was compelled to find another source of petroleum products before July, which was not an easy task, the minister said. Mr. Premajayantha said the government had pursued alternatives to avoid a major energy crisis in the event of a bigger economic embargo by the US and a possible closure of the Strait of Hormuz.

Oil prices rose to a 10-month high above $125 a barrel recently prompting the government to directly negotiate with oil producing countries including Saudi Arabia and Oman to get oil on concessionary terms.

The minister said he had held discussions with petroleum authorities in these countries and talks between officials were underway. There were no discussions with Qatar which is not an oil producing country but a major producer of Liquefied Natural Gas.

He also said the Ceylon Petroleum Corporation was exploring the possibility of importing crude and refined oil directly from oil producing countries under government to government contract basis without depending on agents and oil traders.

However suppliers registered with the CPC charged that the CPC was planning to allow a single supplier to monopolise the deals under the cover of the Iran fuel crisis.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
 
Other News Articles
Further curbs on fuel use as crisis deepens
Lanka’s growth rate to be lowered
Price control on medicinal drugs
Sweeping reforms, including Senate, for reconciliation
Coast Line railway ploughs through southwards
News in brief
Police yet to make breakthrough, education dept says no complaints received against principal
Police brutality mindless, indiscriminate and excessive: Petitioners
Thorough clean-up at Mahamodera Teaching Hospital after twin deaths
Poor man’s luxury transport is by the metre
When English-speaking Tamils met Tamil-speaking ex-LTTE cadres
St. Anthony facilitates Indo-Lanka harmony on Kachchativu
Crocodile in Dehiwala sea does not spoil fun of two-mile swim
Illegal land sales undermine Muturajawela ecosystem
Cesspit poison gas suspected in Kantale stuntman’s death during world record bid
Kahawatte double murder: Charges of drug deals and cover-ups lead to suspects’ trail
Driver Improvement Points
Jayasuriya sworn in as President’s Counsel
Properties liable to seizure and sale for non payment of rates: Mayor
Problems at the Peak
Produce from the North creates surplus in veggies
Fishermen keep afloat the old-fashioned way
Kataragama gem find: Villagers say politicians steal their share
25-year journey amid turbulent weather: Ravaya at crossroads

 

 
Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 1996 - 2012 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved | Site best viewed in IE ver 8.0 @ 1024 x 768 resolution