Fuel Stocks for Weeks Burnt in Days Amid Public Panic, Says CPC

COLOMBO (News 1st); The Chairman of the Ceylon Petroleum Corporation (CPC), D.A. Rajakaruna, has defended the recent fuel price increase, saying the decision became unavoidable due to unprecedented spikes in global oil prices and a surge in local consumption driven by public panic.

Rajakaruna said he had repeatedly told the public not to panic, assuring that the country had an adequate supply of fuel. However, he emphasized that Sri Lanka’s storage capacity is limited and that earlier assurances were based on existing stocks combined with vessels confirmed to arrive during the month.

He said no one anticipated that global fuel prices would increase by nearly 100% between the 1st and the 27th. As a result, the fuel currently available is from vessels that arrived on the 1st and 7th of the month.

According to him, panic buying caused fuel consumption to surge sharply between the 1st and 9th, with 59,200 metric tons of diesel and 47,500 metric tons of 92‑octane petrol being used.

He said this meant the fuel that was meant to last until mid‑month had already been consumed, and the cheaper stocks had been fully exhausted.

Addressing public concerns about why prices were increased despite confirmed shipments, Rajakaruna said CPC only confirms the premium, not the final price. When a shipment unloads, payments must be made based on the five‑day global price average, which had soared. He added that Sri Lanka had discharged almost one‑and‑a‑half vessels of diesel and roughly the same amount of petrol within 9–10 days, with all payments made in dollars, a cost he said would impact the economy next.

Will prices rise again?

Rajakaruna said the situation remains highly uncertain as Iran and Israel have begun targeting oil storage sites and refineries. He said Sri Lanka, like other nations, must collectively face this crisis by reducing unnecessary travel and using fuel only for essential needs.

“This is not a normal situation. It is extremely serious,” he said, urging the public to unite and minimize consumption until global conditions stabilize.

Why was the price increased by so much?

Rajakaruna said the price revision could have been delayed if not for panic‑driven stockpiling by the public.

He added that even with the recent adjustment, fuel prices have still not exceeded the levels in place when the current government took office.