The Petroleum Dealers’ Association has flagged the growing unavailability of Octane 95 petrol and Super Diesel at a number of Ceylon Petroleum Corporation (CPC) filling stations across the country, citing low margins and high investment requirements as the key constraint, Daily FT reported.
According to the Association, dealers are required to invest more than Rs. 3 million to procure a stock of the two premium fuel variants, which are increasingly used by owners of newer vehicles. The operational margin permitted on each shipment is capped at around Rs. 45,000, which the Association said is financially unviable for many filling-station operators.
Daily sales of Octane 95 and Super Diesel typically remain below 500 litres at most locations, leaving stocks to sit for more than two weeks before being sold through. The limited margin generated is insufficient to cover basic operational costs including staff salaries, the Association said.
By contrast, international oil companies operating in the market reportedly offer dealer commissions of around 3 percent of the maximum retail price, while retailing fuel at higher prices — giving their dealers better financial sustainability. The Association said the present pricing and margin structure has discouraged CPC dealers, especially in outstation areas, from maintaining premium stocks, leaving motorists outside Colombo with growing difficulty in accessing Octane 95 and Super Diesel. Dealers urged authorities to review the margin framework, even as the government’s parallel three-month Rs. 57 billion CPC fuel subsidy channels relief towards pump-price stability rather than dealer economics.
Source: Daily FT.
