Distributors warn about a diesel shortage

The Petroleum Dealers' Association states that severe congestion has occurred near filling stations across the island due to private fuel companies Lanka IOC, Sinopec, and R.M. Park taking steps to limit diesel distribution.

The association also points out that currently, diesel distribution activities across the island are actively carried out only at about 650 filling stations belonging to the Ceylon Petroleum Corporation.

These companies have reduced their prices proportionally when government fuel prices were lowered. Although there was an agreement that the government would cover the financial losses incurred, the relevant companies have taken steps to limit diesel supply because the government has not provided the promised funds.

Accordingly, distributors point out that diesel distribution has already been limited at about 500 filling stations, including 250 belonging to Lanka IOC, 150 Sinopec filling stations, and 100 R.M. Park filling stations. They also warn that if diesel distribution continues to be restricted in this manner, a severe fuel crisis could emerge in the country in the future.

The Petroleum Dealers' Association, expressing its protest against the emerging fuel stock limitations, has informed all distributors of the relevant companies to formulate a constructive program to ensure the continuous operation of filling stations.

Meanwhile, the Lanka IOC Distributors' Association states that the decision by Lanka IOC to limit auto diesel supply, effective from September 3rd, has severely disrupted activities in several essential economic sectors, including transportation, industrial, and urban construction. The association has sent a letter to the Managing Director of Lanka IOC, pointing out that consumers are facing severe difficulties due to this situation.

The letter further states that if consumers turn to other suppliers due to the lack of fuel, it will be extremely difficult to win those consumers back, and it will adversely affect the long-term sales of auto diesel in the LIOC network. Therefore, the Lanka IOC Distributors' Association urges the company management to immediately devise a suitable mechanism in this regard.