Two fuel suppliers who had reached preliminary agreements with Ceypetco withdrew from signing contracts at the final moment, as the state-owned corporation navigates a complex global market where sellers increasingly favor the highest bidder amid hundreds of proposals for crude oil, diesel, and furnace oil.
Ceypetco has received hundreds of supply proposals in response to its open call for crude oil, furnace oil, petrol, and diesel, according to Managing Director Mayura Nettikumarage. Two committees are meeting continuously to evaluate these proposals, but selecting suitable and reliable suppliers has become challenging due to the global fuel shortage and the overwhelming number of offers.
Two representatives who had reached preliminary agreements for fuel supply reportedly withdrew at the last moment before signing contracts. Securing diesel supplies among refined fuels has become particularly difficult, and procuring crude oil from the Gulf region has also grown complex.
“We have received hundreds of proposals. Many believe they can supply fuel, but it is not such a simple process,” the Managing Director explained. He noted that under current global market conditions, there is a growing trend where sellers sell fuel stocks to the party offering the highest price.
The procurement committee appointed by the Cabinet, which typically meets once a week, is prepared to convene twice a day if necessary given the current situation. After verifying suppliers’ basic requirements, quality, and payment terms, proposals are forwarded to the technical evaluation committee.
Nettikumarage emphasized that the corporation’s skilled procurement team regularly handles weekly purchases of fuel, agrochemicals, and lubricants in a systematic manner. While there is no immediate issue with refined products, priority is being given to procuring crude oil vessels that were scheduled to arrive around March 26 and early April.
Since furnace oil essential for electricity generation is produced through the Sapugaskanda refinery, the corporation also plans to purchase additional diesel stocks and a furnace oil vessel to address the existing crude oil shortage. A diesel vessel was unloaded last Friday, and another petrol 92 vessel is scheduled to arrive in the country for Ceypetco.
