Fuel dealers flag shortage of Octane 95 petrol and Super Diesel at CPC filling stations

The Petroleum Dealers’ Association has raised concerns over the growing unavailability of Octane 95 petrol and Super Diesel at a number of Ceylon Petroleum Corporation (CPC) filling stations across the country, citing low margins and high investment requirements as key challenges. According to the Association, dealers are required to invest more than Rs. 3 million to procure a stock of these premium fuel variants, which are increasingly used by owners of new vehicles. However, the operational margin permitted on the sale of such fuel remains capped at around Rs. 45,000 per shipment, making it financially unviable for many filling station operators.

Dealers pointed out that the daily sales volume of Octane 95 petrol and Super Diesel typically remains below 500 litres at most locations, resulting in stock taking more than two weeks to be sold. As a result, the limited margin generated is insufficient even to cover basic operational costs, including staff salaries. In contrast, international oil companies operating in the market offer significantly higher commission structures based on the maximum retail price (MRP) of the product. These companies reportedly provide dealer margins exceeding those of CPC—often around 3%, while retailing fuel at comparatively higher prices, thereby enabling better financial sustainability for their distributors. The Association emphasised that the current pricing and margin structure has discouraged CPC dealers, particularly in outstation areas, from maintaining stocks of these premium fuel types. Consequently, motorists owning newer vehicles are facing increasing difficulty in accessing Octane 95 petrol and Super Diesel, especially outside Colombo. The dealers urged relevant authorities to review the existing margin framework to ensure equitable returns for operators, while maintaining consistent availability of all fuel categories across the island.