Fish or cut bait!
Saturday 3rd June, 2023
Long lines of vehicles were seen near filling stations yesterday as well, and it may be a couple of days before the situation is brought under control. Minister of Power and Energy Kanchana Wijesekera has threatened tough action against the fuel stations that did not maintain adequate stocks due to speculation about fuel price reductions. But the government’s bark is worse than its bite.
Worryingly, the country is experiencing a crippling fuel shortage while the GCE O/L examination is on. About 472,500 candidates are sitting it at 3,568 centres. More than 35,000 persons, mostly teachers, are reportedly on examination duty. The government apparently has no concern for these students.
Ruling party politicians bellow rhetoric, but fuel station owners always have the last laugh, for most of them have political connections. They do not place orders for fuel if they get wind of possible downward price revisions in a bid to avoid losses but make a killing when fuel prices are increased. Thus, they have the best of both worlds at the expense of their customers, who have to grin and bear it.
The Ceylon Petroleum Corporation and the Ceylon Petroleum Storage Terminals Ltd., would continue fuel distribution over the weekend as well, Minister Wijesekera said on Friday. The need for such measures would not have arisen if the government had acted wisely. An increase in the petroleum sector overtime bill will cost the state coffers dear, and its losses will be passed on to the public.
The government should have known better than to increase the fuel quota on the eve of price revisions, without taking steps to ensure that fuel would be freely available for a steep increase in the demand to be met. It couldn’t have been unaware that the easing of fuel rationing, and price reductions would lead to a huge increase in the demand for petrol and diesel and there would be a shortage thereof unless action was taken to meet the shortfall in the fuel supply. One can only hope that it will learn from its mistakes in dealing with the filling station owners, who are manically focussed on furthering their interests and maximising profits with no heed for the public or the economy.
It is a mistake for the government to effect fuel price revisions on a specific day every month since it cannot ensure that all filling stations maintain adequate stocks in case of price reductions. At present, fuel station owners do not have supplies replenished for days on end if they fear price decreases, and there is no one to regulate them. They are apparently guided by Rafferty’s rules or no rules at all. The cantankerous government politicians should be asked to exercise control over their restless tongues, and refrain from announcing fuel price reduction in advance.
The government ought to do everything in its power to ensure that all filling stations maintain sufficient stocks regularly, price revisions or no price revisions. It has to get tough with those who fail to do so and muster the courage to revoke their licences. It should fish or cut bait.
