🚨 Premium Fuel Shortage Flagged at CPC Filling Stations

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The Petroleum Dealers’ Association has raised concerns over a growing shortage of Octane 95 petrol and Super Diesel at Ceylon Petroleum Corporation (CPC) stations, primarily driven by financial unviability for operators. • High Investment vs. Low Margins: Dealers must invest over Rs. 3 million to procure a single stock of premium fuel. However, the permitted operational margin is capped at roughly Rs. 45,000 per shipment, making it financially unsustainable. • Slow Turnover: Daily sales volumes for these premium variants remain below 500 litres at most locations, meaning stocks take over two weeks to clear. The resulting margins fail to cover basic operational costs, such as staff salaries. • Competitive Disadvantage: In contrast, international oil companies operating in Sri Lanka offer better financial sustainability for distributors, providing dealer margins often around 3% based on the Maximum Retail Price (MRP). • Impact on Consumers: The rigid CPC margin structure has discouraged dealers—particularly in outstation areas—from maintaining stocks. Consequently, motorists with newer vehicles are facing severe difficulties accessing premium fuel outside Colombo. Dealers have urged authorities to review the current margin framework to ensure equitable returns and stabilize the domestic fuel supply.

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