- Assures no shortage despite ongoing crisis
- Denies debt-linked pricing
- Says Rs. 880 b burden taken over by Treasury
- Govt fast-tracks storage, pipeline projects
In a bid to quell mounting public concern over fuel supplies, the Ceylon Petroleum Corporation (CPC) yesterday (19) assured that shipments have now been secured to meet demand through April, while firmly denying that recent price hikes are linked to any outstanding debt.
CPC Managing Director Dr. Mayura Neththikumara said that five fuel shipments for next month were confirmed on Wednesday (18), ensuring uninterrupted availability. “Earlier, we had secured stocks only until the end of March. With these latest orders, fuel will be steadily available until the end of April,” he said, emphasising that there is no shortage at present.
Amid growing public anger over rising prices, the CPC also moved to dispel claims that an additional charge is being imposed to settle its debts. Dr. Neththikumara said that prior to 2022, the Corporation had accumulated nearly Rs. 880 billion in unpaid dues due to the absence of a proper recovery mechanism for fuel supplied to State institutions. “Since this debt arose from Government expenditure, the Treasury has taken it over. The CPC is no longer burdened by debt,” he said.
On future pricing, he cautioned that it is still too early to determine the scale of further increases, although global conditions suggest upward pressure. He noted that the CPC had anticipated a possible increase of around Rs. 50 per litre and opted instead for a phased adjustment, raising prices by Rs. 24 earlier this month to cushion the impact on consumers. “We are continuing to monitor the situation and will explore measures to minimise the burden on the public,” he added.
The clarification follows allegations by Opposition MP Dayasiri Jayasekara, who claimed that a surcharge was being levied on fuel to service CPC debt and warned that diesel prices could climb to between Rs. 550 and Rs. 660 per litre in the near future.
Meanwhile, Deputy Energy Minister Arkam Ilyas said that steps to strengthen the country’s fuel storage capacity are being fast-tracked in response to the current crisis. “As the President has stated, work is already underway. We are expediting tender processes so that these projects can begin as soon as possible,” he said.
The assurances come even as fuel-related disruptions continue to impact daily life, with ongoing challenges in supply and distribution. Authorities have introduced a QR-based system to regulate distribution and manage demand amid global uncertainty stemming from tensions in the Middle East.
President Anura Kumara Dissanayake earlier told Parliament that several multi-billion-Rupee projects are in the pipeline to boost storage and improve distribution. The key project is an 86,000 metric tonne storage complex in Kolonnawa, comprising six new tanks and the replacement of two decommissioned units, bringing the total to eight. The project is expected to be completed by 2027 at a cost of Rs. 3.32 billion for the six tanks and Rs. 1.45 billion for the replacements.
Once operational, the facility is expected to add around 10 days of additional storage capacity, with current daily petrol and diesel demand estimated between 8,600 and 8,800 metric tonnes.
In addition, plans are underway to fast-track a dedicated pipeline from Muthurajawela to Katunayake to transport Jet-A1 fuel, alongside a 63,000 metric tonne storage facility for the aviation sector. The project is expected to provide a 10-day buffer and support efforts to position the Bandaranaike International Airport as a regional hub, with tenders already attracting private sector interest and contracts likely to be awarded within weeks.