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| Sunday, 3 April 2005 |
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PDA wants to be third player by Jayantha Sri Nissanka Petroleum Dealers Association (PDA) yesterday promised to provide petrol and diesel at Rs.48 and Rs.32 respectively, if the Government permits them to operate. We have conveyed this message to the Chairman of the Ceylon Petroleum Corporation, but so far there is no response, President of the PDA Shelton Fernando told the Sunday Observer. When asked how can they give such a massive Rs.20 reduction when the present petrol price is Rs.68 per litre, Fernando confidently said "it is not difficult". Explaining the PDA proposed plan Fernando said that 50 dealers can get together and raise a capital of Rs.50 million and directly import finished petroleum products. We will distribute oil, using our own fleet of bowsers and existing staff. Since we will have low recurrent expenditure we can price petrol at Rs.48 and diesel at Rs.32, Fernando noted. "What we require from the Government is only an oil storage tank in Kolonnawa and bunker pipe line". He emphasised that even the CPC can price oil at the same price if they can maintain low recurrent expenditure. Fernando pointing an example said that CPC is experiencing high overheads due to excess employees as a result of political interference. At present there are about 5,300 employees but to operate the CPC profitably, half of this number is enough. The CPC also pays Rs.115,000 per day for their office in the Rotunda Tower. Likewise many unnecessary expenses in the CPC has increased their overheads forcing people of this country to pay for their mismanagement, he said. The CPC employees are drawing lucrative salaries similar to the private sector more than any employees in other Government institutions. Fernando noted that is why CPC employees oppose the restructuring plan of the Government fearing their survival in a competitive environment. "We can operate as the third player and provide oil at reasonable price using our existing staff and other resources in this business. What we want is an opportunity to prove ourselves", he emphasised. Fernando said that CPC will face a natural death if they operate at the
present level. Many PDA members (600) will join with Indian companies due to
more perks in the future. The IOC pays three cents per litre for dealers.
But private dealers get only 1.75% commission from the CPC for a litre. "We
have to bear all the costs from this commission including the 1% Economy
Service Charge. Many of our members are disappointed about the CPC and they
will join with Indian companies", Fernando noted. |
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