• LC openings guided by market, not fixed policy

The Ceylon Petroleum Corporation (CPC) has confirmed steady fuel availability, stating that national requirements are being secured through careful planning and scheduled imports.

Explaining the CPC’s broader supply strategy, the corporation’s Managing Director Dr. Mayura Neththikumarage said that storage capacity allowed for roughly 20–30 days of inventory, while orders were generally placed about three months in advance to ensure continuity.

He added that the CPC also undertook short lead-time purchases when necessary, including single-cargo procurements with delivery windows as short as 10 days.

According to Dr. Neththikumarage, the corporation does not operate under a fixed policy for opening Letters of Credit (LCs) for fuel imports, with procurement timelines determined by product type, market conditions, and delivery requirements.

“There isn’t a fixed policy per se. Generally, we initiate the tender process at least 90 days before the required delivery. Depending on the product type and market availability, some tenders may be issued 45 days in advance,” he said, explaining that shipment dates were usually finalised at least one month before arrival once orders were placed.

Dr. Neththikumarage noted that variations in supplier availability and fuel categories made uniform timelines impractical, requiring the CPC to adjust lead times based on operational needs.

On fuel availability, he said that the CPC maintained an average stock level of around one month, although actual volumes differed by product.

He also dismissed concerns over recent adverse weather, confirming that fuel stocks had not been affected.

Responding to queries on the value of LCs, Dr. Neththikumarage said that figures varied significantly depending on the fuel being imported and prevailing prices, making it difficult to cite a single aggregate value. “Annually, we import about $ 4–5 billion worth of fuel products,” he added.

On domestic fuel pricing, he said revisions were considered on an ongoing basis using available data at the time of decision, and that no determination had been made regarding prices in January yet following the absence of a revision in November. “Pricing is a continuous process. We base our public revisions on the data available at the time of decision,” he said.