NEW DELHI (Sputnik) — Indian Oil's subsidiary in Sri Lanka has refuted the allegations that it had a role in the fuel shortage the island nation is currently facing as "baseless and factually incorrect."
The Ceylon Petroleum Corporation (CEYPETCO) has alleged that the Lanka India Oil Corporation, a subsidiary of the Indian Oil Corporation, is to be blamed for the fuel shortage as it was reluctant to replace a rejected shipment of 30,000 metric tons of substandard petroleum.
CEYPETCO claimed that the shipment had arrived at the Lankan port on October 15 and after rejection, it was supposed to be replaced with fresh stock by October 30, but the shipment is still at the Trincomalee harbor. It has accused the Indian firm of trying to distribute the rejected shipment through fraudulent means. However, the LIOC denied having any role in the prevailing crisis claiming that it commands only 16 percent of the island nation's oil supplies. The remaining 84 percent is supplied by CEYPETCO.
"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," the LIOC said in a statement.
"It would not have been such an issue but this panic situation was created through a series of text messages which were sent out by an organized group. Today the issue has been blown out of proportion to the extent that people have started collecting gasoline in bottles and cans and have started their own businesses. The next ship is supposed to reach Sri Lankan waters on the night of November 8, and by November 9, this gasoline issue will be under control. There is no issue with diesel and stocks are sufficient for the next two or three weeks, the Sri Lankan minister claimed.
The President Maithripala Sirisena has appointed a three-member high-level panel to inquire into the current fuel crisis. The Daily Mirror reported that the President had advised the three-member committee to discuss the matter with Petroleum Minister Arjuna Ranatunga as a first step. India has a number of projects in the pipeline aimed at tapping Sri Lanka's energy market. It is laying a piped natural gas network across the island nation in collaboration with Japan.
