News
SJB: China, India taking advantage of Lanka’s unregulated oil market
… questions why the price of a by-product like kerosene was jacked up
China Petrochemical Corporation (Sinopec Group) and Indian Oil Corporation Lanka (IOC PLC) have increased the prices of certain products significantly more than the Ceylon Petroleum Corporation (CPC). However, the fourth player in the market R.M. Parks, a US company in collaboration with Shell that launched operations here in late February last year, has increased its prices in line with Ceypetco.
Convener of the Samagi Joint Trade Union Alliance, Ananda Palitha, yesterday (23) told The Island that foreign players had immensely benefited from the latest price revision at the expense of Sri Lankan consumers.
Alleging that Sinopec and Lanka IOC PLC had become a law unto themselves, Palitha pointed out that the failure on the part of successive governments to establish an Independent Commission and Regulatory Authority for the petroleum sector had allowed Ceypetco and all foreign players to do as they please. Palitha said that in the absence of proper regulatory mechanism, CPC/Energy Ministry should ensure genuine competitiveness in the market.
Palitha said that the NPP government had exploited the ongoing Middle East war to earn unconscionable profits at a time the economy was reeling under the impact of the Hormuz Strait blockade. According to him, all four players increased Auto Diesel by Rs. 79 to Rs. 382 per litre, and Octane 92 Petrol by Rs. 81 to Rs. 398 per litre, while Sinopec and Lanka IOC PLC price list differed in respect of other products. At most filling stations Octane 92 was not available and only higher priced Octane 95 petrol was available.
Pointing out that since the eruption of the Middle East conflict, on 28 February, the NPP had twice increased fuel prices on 09 and 22 March, Palitha said that the government could have cushioned the impact by lowering taxes imposed on crude oil and refined petroleum products. Instead, the latest price revisions resulted in further increase of customs duties, VAT and Port and Airport Development Levy. Additional duties often apply, such as a surcharge tax, on diesel and petrol.
Since the entry of Lanka IOC into the market in 2003, Sinopec in 2023 and R.M. Parks in 2025 eroded the CPC share and, at the moment, it was down to about 57%, and the private players accounted for the rest. Palitha placed the number of filling stations players authorised to operate at Ceypetco (836), Lanka IOC (274) and Sinopec and R.M. Parks 150 each.
Palitha said Lanka IOC has increased Petrol Octane 95 to Rs. 487 a litre whereas the CPC priced the same at Rs. 455) a litre. Lanka IOC and Ceypetco have priced a litre of Super diesel at Rs. 572 and Rs. 443, respectively.
LIOC has also revised its premium fuel categories, with Xtra Premium Petrol priced at Rs. 465, Xtra Mile at Rs. 551, and Xtra Green Diesel at Rs. 588.
Claiming that the government had twice increased the prices of old petroleum stocks, procured at a maximum USD 70 a barrel, weeks, if not months, before the new war, Palitha found fault with the Opposition for not launching a sustained campaign against the exploitation of the public. Palitha said that the increase of a litre of kerosene by Rs. 13 on 09 March and Rs. 60 on 22 March was unjustifiable. “The people do not know that kerosene is a by-product in the process of refining crude oil. Sapugaskanda produces LPG, naphtha, petrol, diesel, kerosene and furnace oil.”
The price of a litre of kerosene to had been increased to Rs 255, Palitha said, adding that it could have been provided to the needy at a much lower rate. If those who represent Parliament bothered to study the issues at hand, they would be able to challenge the government on this disgraceful manipulation of the entire country, he said.
Palitha said that the Parliament owed an explanation as to why the Commission to regulate the oil trade hadn’t been appointed and whether some interested parties financially benefited at the expense of the country.
Palitha said that the introduction of the QR code to control fuel sales and the increase of the fuel quota last Sunday night had been used to deceive the public when those in power and their friends in the industry made money at the expense of the public.
By Shamindra Ferdinando
News
Lanka enters new phase of prosecutions as hurdles clear
MONETABRIEF –The prosecution of high-profile individuals from the former Rajapaksa administrations is set to escalate this month with the clearing of legal hurdles and administrative bottlenecks, according to officials involved in the process.
Former president Gotabaya Rajapaksa’s attempt to secure an order preventing his arrest in connection with the Easter Sunday massacre was turned down by the Court of Appeal on Thursday.
An overseas travel ban has been in operation against Rajapaksa since June, but the Criminal Investigations Department made no move to question him. He instead filed a writ application seeking an order preventing his possible arrest.
President of the Court of Appeal Rohantha Abeysuriya noted that the court would not interfere with the investigative process. Any attempt by the court would amount to an obstruction of the investigation.
In an unrelated case, the same court rejected an application by opposition legislator Dilith Jayaweera seeking the quashing of a contempt charge filed against him by the Fort magistrate. The charges against Jayaweera and a few other opposition politicians are expected to be taken up in the coming week.
Jayaweera and other opposition politicians — Wimal Weerawansa, Udaya Gammanpila, Sugeeshwara Bandara, and Asanka Navaratne
— were hauled up over their remarks relating to the arrest of Suresh Sallay, the former head of the State Intelligence Service.
SLPP academic Mahinda Pathirana is also charged over his public comments about Sallay’s arrest in February under the draconian Prevention of Terrorism Act.
Former president Mahinda Rajapaksa’s son, legislator Namal Rajapaksa, is already in remand custody following his arrest in connection with three cases of bribery and money laundering relating to the 2013 Airbus deal and the Krrish property development in Colombo.
Although Namal has been granted bail in the Airbus money laundering charge, he is in custody until October 13 over the bribery charge relating to the same Airbus transaction. His arrest is under a provision of the Anti-Corruption Act that does not allow a magistrate to grant bail unless under exceptional circumstances.
Meanwhile, his mother Shiranthi Rajapaksa, who had been asked to report to the Financial Crimes Investigations Division on September 24, was a no-show and was yet to return from Singapore.
She had travelled overseas on September 16, and a family spokesman said she was handed the FCID summons at the departure lounge of Bandaranaike International Airport just before she boarded a flight to Singapore.
At the time, the family spokesman said she was due to return in three days.
“We will see greater momentum in the legacy cases in the coming weeks,” an official involved in the prosecutions said.
“We have cleared the legal hurdles to press ahead with more arrests,” he said.
“We are working on a few administrative issues which will be resolved very soon.”
The controversial prosecution of former President Ranil Wickremesinghe is dragging on without him being formally indicted since his arrest in August last year. The Fort magistrate has listed the case again for November 11, when the Attorney-General is expected to report on his decision regarding action against Wickremesinghe.
News
Police warn: Court evaders face property seizure
Police have reminded the public that courts have the power to take legal action against individuals who evade arrest or remain in hiding after warrants have been issued against them.
Police said that under Section 60 of the Code of Criminal Procedure Act No. 15 of 1979, a court could issue a written proclamation requiring a person evading arrest under a warrant to appear at a specified place and time.
The proclamation must allow the person at least 30 days to appear before court, Police said.
If the person fails to appear even after the proclamation has been issued, the court may take further action under Section 61 of the Act.
This includes issuing an order for the attachment of the movable or immovable property belonging to the person concerned.Police issued the reminder highlighting the legal measures available against persons who deliberately evade arrest and remain in hiding after warrants have been issued.
News
Nearly 20 Iranian tankers stranded off Lanka amid US sanctions
Around 20 Iranian oil tankers are reportedly stranded about 15 nautical miles off Sri Lanka’s southwestern coast, with several vessels facing shortages of food, fuel and fresh water amid tightening US sanctions and maritime restrictions, The Wall Street Journal reported.
According to the report published on Thursday (1), US officials have in recent weeks urged Sri Lanka to prevent local vessels from supplying essential provisions to the tankers and their crews.
The report, citing Sri Lankan Government documents and companies involved in supplying the vessels, said the US had raised concerns over assistance being provided to the sanctioned tankers.
The situation follows the United States’ decision to reimpose a maritime blockade of the Strait of Hormuz in July, which has reportedly left dozens of Iranian and Iran-linked tankers involved in transporting sanctioned oil to China stranded near Asian countries, including Sri Lanka and Malaysia.
Most of the vessels are reportedly empty tankers that had previously transported Iranian crude to Asia, often through ship-to-ship transfers, before preparing to return to Iran for additional cargo.
The WSJ reported that the US Embassy had warned Sri Lanka in August that it was monitoring 19 Iranian tankers off the country’s western coast and had raised the possibility of secondary sanctions against companies providing services to sanctioned vessels.
Sri Lankan authorities have maintained that the vessels are located outside the country’s 12-nautical-mile territorial waters and that the Government is not providing them with logistical assistance.
Meanwhile, shipping companies told the WSJ that obtaining approval to supply essential items, including food, drinking water and fuel, as well as repair services, to the Iranian vessels had become increasingly difficult.
Separately, Reuters reported in late August that 27 sanctioned Iran-linked tankers were waiting off Sri Lanka without cargo.
The Trump administration has also imposed additional sanctions on Iran and warned countries and companies trading with Tehran of potential consequences, as Washington seeks to pressure Iran to make concessions amid the ongoing conflict.
Similar concentrations of Iranian-linked tankers have been reported off Malaysia, where waters have historically been used for ship-to-ship transfers of Iranian crude destined mainly for China.
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