News
Estates in crisis due to fuel shortage – Planters’ Association
25 per cent drop in production feared
By Nalaka Rathnayaka
A million people employed in the tea sector might lose jobs if the government doesn’t provide adequate stocks of diesel and petrol to plantation companies, Planters Association Spokesman Dr. Roshan Rajadurai says.
He said that plantations needed large amounts of fuel to operate machinery and transport purposes.
“Due to power cuts, we need to run generators. A million people are directly and indirectly working in the tea industry. If the tea industry collapses, workers will lose employment and the country a great deal of foreign earnings.
Rajadurai added that they had estimated a production drop of about 25 percent by the end of this year. Between January and April this year 86,232 tonnes of tea were produced. The amount produced during the corresponding period last year was 299,338 tonnes, he said.
“If we can’t meet the demand, buyers will switch to India and Kenya. When we go to gas stations near the estates, people who had been in the queues attempt to stop us. Then we can’t get fuel. If the CPC can send us fuel directly, we have facilities to store them,” he said.
Rajadurai said that in recent months, a large number of plantation workers have gone overseas in search of jobs. Meanwhile, a lot of estate sector youth are not interested in working on estates, he said.In recent months, a large number of estate youth who migrated to urban areas in search of employment had returned due to the economic crisis. “However, they are not interested in working on estates, and there is a severe labour shortage,” Rajadurai said.
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Fuel crunch looms
Govt. tells fuel distributors to maintain stocks to ensure uninterrupted supplies
by Saman Indrajith and Norman Palihawadane
The government had instructed private fuel distributors to maintain minimum stocks and ensure uninterrupted supplies to the market, Energy Minister Anura Karunathilaka told Parliament yesterday (06).
Karunathilaka said the Ministry of Energy Secretary had notified the relevant companies of the requirement, following a reduction in supplies by some private distributors, amid higher international fuel prices.
The Minister said private companies had informed the government that they were facing losses because international prices had risen while fuel was being sold, locally, at prevailing prices. As a result, some companies had reduced the volumes released to the market.
The reduced supplies had increased the burden on the Ceylon Petroleum Corporation (CPC), whose share of the diesel market had risen from about 54% to 82%, the Minister said.
“The CPC currently holds an 82% share of the market,” he said, adding that it had increased its supplies, compared with February, to compensate for the reduction by private distributors.
Karunathilaka said the government could not, under the existing agreements with private companies, specify the quantities they should supply to individual filling stations. However, it could require them to maintain minimum stocks in the country.
The Minister said the Energy Ministry had already instructed companies that had failed to maintain the required stocks to take steps to prevent supply disruptions.
The Minister attributed the queues reported at some filling stations to reduced supplies from private distributors, as well as normal variations in fuel distribution. He also said demand for CPC fuel had increased because private companies generally did not provide fuel to dealers on credit, while the CPC offered a three-day credit facility.
“We expect that, as the Ceylon Petroleum Corporation takes on this additional burden, the problem will ease to some extent by Wednesday or Thursday,” Karunathilaka said.
He said instructions had also been issued to increase supplies to CPC filling stations. A special discussion on the issue is scheduled for today (07), with officials of the Energy Ministry and CPC expected to participate,
along with President Anura Kumara Dissanayake.
Meanwhile, Petroleum Dealers’ Association officials have called for an early solution to the supply issue. Association Chairman D.V. Shantha Silva said queues had been reported at many filling stations, mainly those operated by private distributors.
He said the situation was not due to an overall shortage of fuel, but was linked to reduced orders by Lanka IOC, Sinopec and R.M. Parks amid concerns over losses incurred on fuel sales.
The Ceylon Petroleum Private Tanker Owners Association has urged motorists to refrain from panic buying, saying there was no nationwide disruption to fuel supplies.
The government earlier increased fuel prices and introduced a per-litre diesel subsidy following concerns raised by distributors over rising international prices.
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