Fuel orders exceed demand by 10%

• CPC warns hoarding could trigger shortages

The Ceylon Petroleum Corporation (CPC) says that fuel orders currently exceed the country’s actual requirements by around 10 per cent, while assuring there is no risk of a shortage if emergency stockpiling is avoided.

Speaking during a television programme, CPC Managing Director Dr. Mayura Neththikumarage said that Sri Lanka has sufficient fuel reserves to meet demand at least until mid-May, stressing that the present challenges stem not from a lack of fuel but from hoarding and distribution mismanagement.

“The real issue isn’t the availability of oil,” he said. “If a ship carrying 40,000 metric tonnes arrives, it fills the demand gap of 40,000. In the past, diesel prices rose by 150%, and what would normally be Rs. 40 became Rs. 60. If this over-purchasing increases further, there could be days when fuel runs short in the country.”

He noted the QR code system has been effective in ensuring proper allocation and preventing widespread shortages, adding that monthly fuel consumption requirements are being fully met.

“Minor overuse by individual vehicles does not create a significant problem. The reserves are sufficient, and fuel will not run out. The main problem is when people hoard fuel. Some requested 18 fuel vouchers when normally they should only take three, claiming they needed it for six months. We do not allow such hoarding,” he said.

Dr. Neththikumarage further explained that even if a few individuals store large quantities, fuel allocated for six months would still arrive in phases. However, he warned that excessive hoarding could disrupt daily distribution and create the appearance of shortages.

“For ordinary consumers, there will be no disruptions,” he added.

Source - The Morning