… as Lakvijaya falters, power plants need over 2 mn litres of fuel daily

By Shamindra Ferdinando

The SJB yesterday (06) said that the NPP government owed an explanation as to why Litro Gas Lanka Limited and Laugfs Gas PLC were allowed to increase the prices of old stocks of domestic gas. Litro and Laugfs have increased the prices of 12.5 kg cylinder by Rs. 775 to Rs. 4,765 and by Rs. 1,070, to Rs. 5,700, respectively.

Convener of the Samagi United Trade Union Force (SUTUF) and the Samagi Joint Trade Union Alliance Ananda Palitha said they were aware of the state-owned gas supplier Litro and the private sector enterprise making a killing at the expense of consumers.

Acknowledging that gas and fuel prices had to be increased in view of the disruptions to the regular supply route through Hormuz Strait, the former petroleum sector worker emphasised it wouldn’t be fair, under any circumstances, to apply a new pricing formula to old stocks.

Taking advantage of the new West Asia war, the government (CPC) and three foreign private suppliers, namely Lanka IOC, Sinopec and R.M. Parks, increased prices of old fuel stocks, Palitha alleged, adding that his accusations, previously reported in the front-page of The Island, haven’t been disputed.

Responding to our queries, Palitha pointed out that Sri Lanka experienced gas supply disruption even just before the eruption of the Iran war.

Warning that further electricity tariff increases were around the corner due to failure on the part of the country’s only coal-fired power plant Lakvijaya to produce the required electricity, Palitha blamed the developing crisis on the use of low-quality coal for power generation.

Referring to recent media reports of fuel powered power plants needing 800,000 litres, daily, to meet the shortfall due to the crisis at Lakvijaya, Palitha said that the actual requirement was much more. Kelanitissa Combined cycle power plant alone required 1.3 mn litres of diesel daily, Palitha said, alleging the country was paying a very heavy price for corruption and mismanagement by the current dispensation.

According to Palitha Kerawalapitiya (Yugadanavi) Combined Cycle Power Plant required 750,000 litres of black oil/furnace oil. Together, those two power plants, namely Kelanitissa and Yugadanavi, required over 2 mn litres per day, the trade unionist activist said, warning the government of frightening economic consequences.

Having explained the requirements of other power stations in operation, Palitha said that the situation was so bad that the CEB, about three days back, began buying fuel worth Rs 1.7 bn from the Ceylon Petroleum Corporation on credit. Responding to another query, Palitha said that though the Iran war was having a major impact here, the NPP should accept responsibility for the corrupt coal deal and horrendous mismanagement of the power sector.

The government sought to downplay the crisis, claiming that Sri Lanka received Indian and  Chinese support to meet its energy requirements, Palitha said. However, foreign powers were exploiting the situation here to advance their agendas, Palitha added, urging the government to come out clean.

India was increasing its hold on Sri Lanka, the trade union activist said, noting that Sri Lanka had recently declared its intention to develop a section of the Trincomalee oil tank farm together with India. According to Palitha, Indian Prime Minister Narendra Modi himself had asked President Anura Kumara Dissanayake to fast-track the project.