SL fuel consumption comes down by 50 % due to drop in demand

Alleged irregularities within the Ceylon Petroleum Storage Terminal Company’s (CPSTL) and its fuel distribution system has had an indirect impact on fuel consumption data countrywide which was a significant drop due to a decline in demand, Ministry of Power and Energy sources highlighted.

CPSTL is a joint venture between the Ceylon Petroleum Corporation and the Lanka Indian Oil Company, responsible for receiving fuel from ships, storing it and distributing it to filling stations and facilities.

Sri Lanka’s fuel consumption has come down by 50 per cent due to the economic situation in the country, high prices of petrol and diesel and the reduction in consumers’ buying power, President of the Petroleum Dealers’ Association Shelton Fernando disclosed.

He further revealed that all types of fuel are presently available in the country without any shortage and the country needs 28.000 barrels of petrol annually.

At present it has dropped to 14,000 barrels due to an increase in fuel prices by three-fold since 2022 as people have cut down using their vehicles for transportation except for essential travelling, he said.

The consumption of petrol and diesel is an indication of economic development, he said, adding that economic activities are still stagnated.

According to Finance Ministry data, fuel importation has shrunk by around 20 per cent since 2019.

Fuel distributed to petrol stations countrywide between the first quarter of 2018 and the same period in 2024, has a difference of 35-45 per cent as many people are using public transport and are restricting their unnecessary travelling due to the high price of fuel.

Prices of petrol and diesel were below Rs. 200 (per litre) before the COVID-19 pandemic era and it is now more than Rs. 300.

Making sales of fuel data erroneous more than 1.3 million entries on the sales and distribution of petroleum products from CPSTL on Systems Applications and Products data has been changed or deleted since 2010 and most of it has transpired in 2022 during the fuel crisis period.

According to Power and Energy Minister Kanchana Wijesekera, this is part of major findings of the forensic audit conducted by a private firm and CPSTL audit investigation on the sales and distribution of petroleum products from CPSTL.

The forensic audit was started on a complaint made by the Minister to the CID in August 2022 on irregularities at CPC and CPSTL.

This data deletion incident took place on November 24, 2023, involving an employee of a private audit firm, he said.