Nov 07, 2017

LIOC offers assistance to avert fuel crisis

Lanka IOC PLC (LIOC), the Sri Lankan subsidiary of Indian Oil Corporation Ltd  has offered to assist Ceylon Petroleum Corporation(CPC) to face the fuel crisis in Sri Lanka  due to a fuel shipment delay, a media release issued by the company said.

Though LIOC had sufficient buffer stocks, in order to assist CPC (whose shipment has been delayed), the has immediately contacted their global suppliers for an emergency delivery (in addition to the replacement delivery by M/s TOTAL which has brought   the disputed parcel of fuel), LIOC disclosed.

This is expected to reach Sri Lanka by 10 November 2017.the media release said adding that on various occasions in the past, LIOC has offered all its assistance to CPC to procure emergency shipments of petroleum products.

It will continue to do so, whenever required. As a responsible petroleum company, at the times of strike, LIOC has always worked round the clock to make the product available to the citizens of the country, the company added.

LIOC has noted that consumers across the country have been facing some shortages of petrol over the last few days.

As a reliable distributor of petroleum products in Sri Lanka over many years, LIOC is making all efforts to assist in the early resolution of this problem.

However, attempts by some to blame LIOC for causing the shortage are mischievous and factually incorrect, and we categorically reject such allegations, LIOC said.

LIOC had procured a shipment (parcel) of 35,000 MT of petrol from the French oil company M/s TOTAL on DAP basis, which arrived in Sri Lanka on 16 October 2017.

 As per routine procedure, the petrol was tested by CPC/CPSTL laboratory before being accepted by LIOC. It was found that while the parcel met the chemical properties specification, it contained some visible particles.

CPC/CPSTL laboratory as well as LIOC refused to accept the parcel. LIOC maintains its own high quality standards, which it does not compromise at any cost.
LIOC immediately informed M/s TOTAL to replace the parcel. LIOC noted that that ownership of the product remains with M/s TOTAL till it satisfies the requirements of LIOC and CPC/CPSTL laboratory. Once a parcel is rejected, LIOC has no further role thereafter and it is the seller's own sole discretion/responsibility to decide when to take out the vessel from Sri Lankan waters.
As replacement cargo would have taken at least 25-30 days, M/s TOTAL offered to remove the particles through filtration process, which is a common industry practice, in order to enable expedited delivery by 3-4  November 2017 to manage the present crisis.

For reasons unknown to us, this proposal was not acceptable to CPC officials.