Petrol Fiasco

Aug 29, 2011 (LBO) – A Sri Lanka government committee probing the import of substandard petrol which damaged vehicles has recommended payment of compensation to affected motorists. The report by the committee, handed over to petroleum minister Susil Premajayantha Monday, said the fiasco was caused by government officials not following essential procedures for fuel imports, a ministry statement said.

It said 20,000 metric tonnes of bad quality petrol that did not meet the required standard was imported in June 2011 as an “urgent” order after stocks were allowed to fall to dangerous levels following the rejection of three tenders.

The statement said three import tenders were rejected during May as a result of which petrol stocks fell to dangerous levels by June 01, 2011 and a shortage loomed.

The report recommended the cash loss caused to the state refiner and retailer Ceylon Petroleum Corporation be recovered from the supplier of the substandard stock of petrol.

It also recommended investigations against officials responsible for the import to see their liability for the losses and that action be taken against them.