Unavailability of storage capacities key reason for fuel crisis: CPC Chief

Saturday, 9 April 2022 01:14 - - {{hitsCtrl.values.hits}}

CPC Chief Sumith Wijesinghe says arrangements made to import 265,000 tons of diesel in April
Asserts India has agreed in principle to provide fuel via Indian Credit Line for a year considering dire status
Says $ 290 m already utilised to import fuel from $ 500 m Indian Credit Line
Confirms other long-term agreements have been entered into with suppliers to obtain sufficient stocks of fuel

The State-run Ceylon Petroleum Corporation (CPC) yesterday outlined that the unavailability of storage capacities was a key reason for the ongoing fuel crisis, adding that the aim is to increase the capacities of the buffer stock in future.

“One of the key reasons for the ongoing fuel crisis was that we did not have large storage facilities to maintain large buffer stocks,” CPC Sumith Wijesinghe said at a special media briefing organised by the Presidential Media Centre (PMC) yesterday.

He also said that they have made arrangements to import 265,000 tons of diesel for this month.

“A total of 30,000 tons of diesel is schedule to arrive on 11 and 12 April, whilst 40,000 tons of diesel is schedule to arrive on 14 and 15 April,” he said, adding that a shipment which arrived yesterday was being unloaded.

He also said a shipment of 37,300 tons of diesel is schedule to arrive on 21 and 22 April, noting that steps have already been taken to receive 40,000 tons of diesel on 22 and 23 April.

In addition, the CPC Chairman revealed that it was agreed in principle by India to provide fuel for year through the Indian Credit Line considering the dire status.

Wijesinghe said of the $ 500 million worth Indian Credit Line for fuel, $ 290 million worth of fuel stocks has been obtained for April.

Apart from the Indian Credit Line, other long-term agreements have been entered into with suppliers to obtain sufficient stocks fuel, he added.

He said through long-term agreements with other registered suppliers, the CPC has been provided with 30-days, 90-days and six-month credit facilities.