By: Staff Writer
Colombo (LNW): Singaporean energy company Vitol Asia’ has been awarded a procurement contract for the supply of four shipments of Petrol 92 Octane to Sri Lanka although there were adequate stocks available in the country at present.
Bids were invited from suppliers registered under the Ceylon Petroleum Corporation (CPC) for a long-term contract for the purchase of four shipments of Petrol 92 Octane over a period of 4 months, from 21 September 2023 to 21 January 2024.
While four bids were received, the proposal presented by the Minister of Power and Energy Kanchana Wijesekera to award the relevant procurement to the Singaporean company, as per a recommendation of Cabinet Appointed Procurement Committee, was approved by the Cabinet of Ministers on Monday (11 Sep.).
He said that the Ceylon Petroleum Corporation and Lanka IOC have adequate fuel stocks. The Minister noted that the existing shortage is due to the non placement of orders by Fuel Station owners anticipating a fuel price reduction.
The stock position of Diesel – 122,769 mt, Sup. Diesel – 5,739 mt, 92 Pet – 56,797mt ,95 Pet – 2,318 mt JET A1 – 42,625 mt was sufficient till the end of Next month , CPC source said.
In a move aimed at dispelling misconceptions and clarifying the financial landscape of fuel suppliers, Power and Energy Minister Kanchana Wijesekera presented a comprehensive breakdown of fuel costs for the Ceylon Petroleum Corporation (CPC), Lanka IOC (LIOC), and Sinopec in Parliament
The disclosure comes in the wake of a recent price revision in fuel rates, effective from 1 September.
Minister Wijesekera emphasized that the maximum profit margin allowable for any fuel supplier stands at 4% per litre, as stipulated in the fuel price formula adopted by the Government
One of the main aspects addressed in tabling the breakdown was setting the maximum retail price for fuel; a responsibility overseen by the Power and Energy Ministry monthly..
“Hope this clears out the misleading and false statements made by various individuals on unreasonable profits gained by other suppliers and CPC.
One of the main aspects addressed in tabling the breakdown was setting the maximum retail price for fuel; a responsibility overseen by the Power and Energy Ministry monthly.
He also noted that any fuel supplier is at liberty to sell their products below the established maximum price, thereby creating a competitive environment for the benefit of consumers.
