• CPC says stocks adequate, extra imports planned
• Supplies to be boosted in 62 areas
•  Govt says relief provided despite IMF advice

Fuel prices are likely to remain unchanged for the next three months, with the Ceylon Petroleum Corporation (CPC) assuring that adequate stocks and additional imports are in place to prevent a major disruption to supplies.

CPC Chairperson D J Rajakaruna said yesterday (6) that fuel prices would remain at their current levels until the end of this month (October), with no immediate increase expected.

Speaking at a special media briefing, Rajakaruna said the country should be able to maintain the current fuel prices and supply situation over the next three months, provided there were no major disruptions.

He acknowledged that temporary fuel shortages could occur in certain areas due to reduced fuel distribution by other fuel companies. Around 62 areas where such shortages could potentially occur had been identified about three weeks ago, he said.

Discussions had since been held with the relevant companies and arrangements made to increase fuel supplies to those areas.

Rajakaruna stressed that there was currently no reason to expect a major fuel crisis and urged the public not to panic over reports of shortages or remain in long queues at filling stations.

“If fuel shortages or long queues are reported at stations operated by other companies, the public can use the nearest CPC filling station,” he said.

He assured that the CPC had adequate fuel reserves, with fuel stocks reviewed every Tuesday. Following the latest review, arrangements had been made to urgently bring in two additional fuel shipments, he said.

Steps had also been taken to import quantities of fuel exceeding the country's requirements for the current month, he added.

Rajakaruna reiterated that the CPC was taking measures to ensure uninterrupted fuel supplies and prevent any major disruption to the country's fuel distribution system.

Meanwhile, Rajakaruna said the public should not have to bear the additional costs incurred by private fuel companies that do not have refining facilities, questioning why such companies had been selected to supply fuel in the first place.

He was responding to claims that the CPC makes higher profits because it imports crude oil, refines it and supplies the refined products, while private companies have to spend more because they purchase refined fuel.

Rajakaruna said the CPC’s refining capacity had helped keep local fuel price increases lower despite sharp increases in world market prices. Even when global prices increased by 80% to 90%, local fuel prices had been controlled at increases of around 39%-40%, he said.

He alleged that the public was being given the wrong impression that it was a good thing to have these companies.

He further said that the CPC could take on the challenge of supplying fuel, but under current circumstances, it was not possible because it lacked a distribution network.

“If we had a distribution network, we could easily manage the situation by identifying locations where queues are forming and supply fuel to those specific areas. However, there are some areas that don’t have a single fuel station, so there is no way to distribute fuel there,” he said.

Meanwhile, the Government has provided significant relief to consumers despite advice from the International Monetary Fund (IMF) to adjust domestic fuel prices in line with rising global prices amid the conflict in the Middle East, Cabinet of Ministers Spokesperson Dr. Nalinda Jayatissa said.

Speaking at the weekly Cabinet media briefing yesterday, Dr. Jayatissa said the IMF had previously advised the Government to align the costs of essential services, including electricity, water and fuel, with their actual costs.

However, he said the Government had not passed the full burden of rising costs on to the public.

“The IMF has been advising us to adjust costs for services such as electricity, water and fuel. While we are attempting to adjust costs, this Government has provided significant relief without placing the entire burden on the people,” Dr. Jayatissa said.

He said the Government had previously provided a subsidy of Rs 100 per litre on diesel, while a Rs 70 per litre subsidy is currently being provided. A Rs 20 per litre subsidy had also been provided for petrol during the previous fuel price adjustment, he added.

He said the Government would continue to monitor fluctuations in global fuel prices and determine future measures accordingly, stressing that despite the IMF's recommendation for cost-based pricing, the Government had been able to provide relief to consumers.