🚨 CEB Disputes Media Reports on Canceling Competitive Bidding for Fuel Purchases

⭕️CEB states that no decision has been made against the competitive procurement of diesel for electricity generation.

⭕️According to the CEB, there are three main fuel types used for electricity generation (naphtha, furnace oil, and diesel). CEB says, there are no feasible suppliers for naphtha and furnace oil other than the CPC.

Diesel is the only fuel that can be purchased through an open bidding process. And "The new management has not taken any decision against competitive procurement of diesel for electricity generation."

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Here are the questions CEB need to answer:

1. Why is it not feasible to purchase naphtha and furnace oil through an open bidding process?

2. Did the CEB cancel any plans to purchase Naphtha and Furnace oil through an open bidding process?

Here is why those answers are important,

⭕️Despite naphtha being a byproduct of CPC's refinery process, CPC sells naphtha to the CEB at a significantly higher price than the market price, under so called "mutually agreed upon price."

⭕️In 2023, the CEB purchased naphtha from the CPC at prices ranging from Rs. 161 to Rs. 263 per litre, while the global market price stood at Rs. 110 per litre (according to the Sunday Times). - https://t.co/xkHB50qnDN

⭕️As a result, the CEB incurred a loss of Rs. 17.27 billion in 2023 due to the high cost of purchasing naphtha. This loss was recovered through a 3% increase in electricity tariffs, paid by electricity consumers.

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