Former Minister of Power and Energy and leader of the United Republic Front (URF) - Patali Champika Ranawaka, says that the price of a litre of diesel could exceed Rs. 700, following the government had procured a barrel of diesel at around USD 286 from a foreign fuel supplier.
He stated that while the diesel is purchased at this price, a 18% tax, an additional Rs. 50 per litre as well as 3% added for the intermediaries, shooting up the price of a litre to over Rs. 700.
He made these remarks at a media briefing held in Colombo yesterday (April 20).
Elaborating further, Ranawaka said, "The government led by President Anura Kumara Dissanayake had procured this diesel from the company named Trafigura."
He noted that 05 cargo shipments had initially been awarded to the company, with a premium of 3.8% agreed upon. He explained that this premium includes the supplier’s margin, insurance coverage, and freight costs.
He further said :
"So far, only 02 ships have arrived, and 03 more have not yet arrived. It has been reported that these ships have not arrived due to the emergency crisis situation. We still don't know whether that tender has been cancelled or when those ships will arrive. The Ceylon Petroleum Corporation (CPC) has therefore called for a non-competitive tender to procure diesel and aviation fuel. The tender is being secured by the same company!. This Trafigura company, which said it could not import fuel under emergency conditions, has since been able to import diesel. They previously said the premium was 3.8%. But in this new tender, they are importing fuel at a higher premium of 48%. Around 248,000 barrels of diesel as well as 64,000 barrels of aviation fuel are to be imported. The premium on both of these is as high as 48%. One can imagine what is happening here. This is not due to the war situation. This is a fraud done with premiums. The President says that oil will be imported from somewhere. Then we have to ask, is this how oil is being imported?"
