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Fuel sheds seek payment deadline extension

07 Sep 2022

  • CPC denies allegations of filling station closures  
BY Safrah Fazal   The All-Ceylon Filling Station Owners’ Association (ACFSOA) stated that challenges in securing sufficient funds to place orders for fuel by 10.30 a.m. have proven to be a challenge to many fuelling station owners, leading to fuelling stations having to close down for business for the day. Speaking to The Morning yesterday (6), ACFSOA President Kumar Rajapakshe stated that the new system introduced by Minister of Power and Energy Kanchana Wijesekera, which calls for fuelling station owners to make payments for a load of fuel by 10.30 a.m., has led to many of them not receiving the supply of fuel, as they are unable to pay such a large sum upfront.  “It’s not practical for fuel shed owners to deposit a large sum before 10.30 a.m. If they don’t make the payment, then they don’t get fuel for that day. If there is no fuel, the shed will have to close for the day.” Rajapakshe stated that the challenge arises largely due to many consumers opting to pay through the credit card facility.  “We sell a load of fuel within five to six hours. But 20% of the fuel is purchased via credit cards because people don’t have money at hand. This amount is credited to our accounts only at 3 p.m. the following day. Thus, we are unable to make the deposit to the Ceylon Petroleum Corporation (CPC) for the following day’s fuel load by 10.30 a.m. on that day.  “What’s even worse is that from Friday to Sunday, the total sales made via credit cards are deposited to our accounts only on Monday at 3 p.m. So by Monday morning, we find it hard to order fuel. The CPC says that there is no hindrance for us to make the payment, but it is false.  “This issue has occurred because we used to receive fuel on a cash-on-delivery system but this Minister has stopped this facility and has instead forced us to make the payment prior to delivery. But requiring approximately Rs. 3.4 million per fuel load is very high and filling station owners don’t have that kind of money to pay upfront.  “We also have account holders who pump on credit like the Police, hospitals, emergency services, and others. We only get the payment for these on a monthly basis. This was the reason as to why the CPC gave us the cash-on-delivery facility, but the Minister put a stop to it.” Meanwhile, issuing a press release yesterday, the CPC refuted all reports alleging that approximately 300 fuelling stations islandwide have faced temporary closure citing various issues including a shortage of fuel, selected fuel sheds receiving fuel on priority and challenges in making payments before the stipulated deadline.  While stating that the deadline to make the payments was extended to 10.30 a.m. since Monday (5), the CPC said: “If the stocks of fuel distributed to filling stations run out within five to six hours, and if 95% of the payments are cash transactions, then fuel shed owners should have no hindrance in making the bank deposits on time.” In response to allegations made by the ACFSOA previously with regard to some filling stations receiving fuel on a priority basis whilst others are neglected, the CPC stated that fuel stations receiving fuel on a priority basis were selected based on the criteria issued by the Ministry of Power and Energy.  “Accordingly, taking into account the island-wide fuel requirements, the CPC’s regional managers have selected fuel sheds that are to receive fuel on priority.” The press release also stated that CPC bowsers and private bowsers have begun operating in full capacity and that the Ceylon Petroleum Storage Terminals Ltd. in Kolonnawa and Muthurajawela has taken measures to operate in full capacity while measures have been taken to distribute fuel through the Sapugaskanda Oil Refinery. “That fuelling stations have had to temporarily close down due to issues such as the priority list and limits imposed on payments made through credit cards are false reports,” the CPC claimed. The ACFSOA said on Monday (5) that 300-400 filling stations islandwide have to be temporarily closed on any given day as fuel is not supplied to them on a daily basis, and because the amount of fuel supplied to most of the filling stations is not enough to meet the demand.  Speaking to the media, Rajapakshe said: “On a given day, 300-400 filling stations are kept closed as fuel is not supplied to them daily. Not every filling station gets fuel daily, as the CPC, on a given day, supplies fuel to selected filling stations under a priority list. Some other filling stations are not getting enough fuel. The amount of fuel they get, usually 6,600 litres of fuel, is sufficient only for four to five hours. Therefore, they also have to be closed.”  He further said that certain filling stations are not getting fuel and are then kept closed due to the delays in making payments for the purchase of fuel. Although the deadline to make the relevant payments has been extended by an hour, considering the prevailing situation, he said that some filling station owners cannot make the payments on time as it takes time to count the money and deposit it to the bank accounts.  


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