Tuesday, April 16, 2024

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Potential fuel quota increase following evaluation: Minister

By: Staff Writer

Colombo (LNW): The government has decided to increase fuel quota under the QR system next month as there was a significant reduction in the consumption of petrol and diesel owing to drop in using vehicles for un necessary travelling and long distance driving by motorists.

Power and Energy Minister Kanchana Wijesekera revealed y that fuel quotas might see a further increase next month.

The decision comes after a comprehensive evaluation of fuel cargo plans and supply for the upcoming six months, carried out by the Ceylon Petroleum Corporation (CPC).

Fuel import plans, refinery operations, refinery upgrade proposals, QR quotas storage capacity, stock automation, distribution, and agreements with fuel stations were among the topics discussed.

The comprehensive evaluation of these aspects will serve as the foundation for determining the appropriate increase in fuel quotas for the following month.

Analysts opined the potential increase in fuel quotas in August is likely to have a positive impact on consumers and businesses alike. “With a surge in economic activities and the resumption of various sectors, a steady and reliable fuel supply is crucial to sustain the momentum of growth,” they pointed out.

Sri Lanka has recorded a significant reduction in fuel demand over the year from January 2022 to January 2023, with consumption of auto diesel and petrol dropping as much as 50 and 30 percent respectively, Power & Energy Minister Kanchana Wijesekara said.

He noted that retail and industrial fuel sales records of the state-run Ceylon Petroleum Corporation (CPC) show a reduction of about 50 percent in auto diesel, about 30 pertol in petrol, and about 70 percent in kerosene use.

Following the implementation of the QR-based National Fuel Pass, Sri Lanka’s monthly fuel import bill dropped to USD 230 Million, from USD 500 Million.

In a statement, the Energy Ministry says the distribution of fuel to the public, under the QR-code-based quota system has resulted in major savings for the state.

According to the Energy Ministry, six Million vehicles have registered with the National Fuel Pass so far, while 93% of the fuel stations across the country have implemented the QR-based fuel dispensing system.

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