Fuel pricing irregularities: Ministry disputes COPE findings

• Consumers  are being charged extra amount of Rs. 5.85 per litre for 92 petrol, Rs.  7.50 per litre for 95 petrol, according to COPE
• COPE probes into irregularities of the CPC
• Dishonesty within the Corporation causes a loss of Rs. 3,416Mn
• COPE insists on holding the CPC officials accountable

 The  Power and Energy Ministry disputed findings by the COPE (Committee on  Public Enterprises) that the public had to bear an additional cost for fuel  due to the payment of Rs.31 billion as an extra commission to the  distributors. 

A ministry official said only the standard commissions are paid for the distribution network.

Following  a recent investigation by the COPE, it has, however, been revealed that  customers are currently facing increased prices for various fuel types  due to overpayments made by officials. 

“As of the latest calculations,  consumers are being charged Rs. 5.85 per litre for 92 petrol, Rs. 7.50  per litre for 95 petrol, Rs. 5.88 for LED, and Rs. 6.96 for LSD,  resulting in significant excess costs compared to standard market  rates,” the Parliament Media unit said.

This matter was  taken up for discussion on Wednesday (19) when the COPE met under the  Chairmanship of MP Rohitha Abeygunawardena to examine the Auditor  General’s report for the year 2022 and the current status of the Ceylon  Petroleum Corporation.

It was disclosed at the meeting  that due to dishonesty existing within the Corporation and the  deliberate delay of eight years and eight months in issuing the relevant  circular to the filling station owners by the marketing department of  the Corporation, the Corporation has incurred a loss of Rs. 3,416  million for the period 2014-2022. In such context, COPE was of the view  that the marketing department should assume responsibility for  committing large-scale fraud to the Corporation.

Furthermore,  COPE directed the CAO/AO a report be submitted to the Committee within  seven working days containing the list of names of those affiliated with  committing the fraud and the measures the Corporation has taken to hold  such officials accountable for their wrongdoings.

The  Committee also inquired regarding the commission which was paid in  excess for the year 2022 which has been accounted as a sales expenditure  when it should have been entered as a receivable. Accordingly, the  Committee further inquired about the officials responsible for the  recovery of these overpayments and the action taken in this regard.

It was also disclosed at COPE that the officials responsible for the said are no longer in the country.
The  Committee on Public Enterprises directed the CAO/AO to submit a  comprehensive report within two weeks containing the list of names of  those affiliated with committing such financial fraud and to make a  complaint to the CID for investigations in parallel with the internal  investigations.