Backup Plan

June 08 (LBO) – State oil giant Ceypetco will issue extra fuel stocks to meet an impending fuel shortage, as Lanka Indian Oil Corporation (LIOC) sheds run dry from Thursday.

Some LIOC fuel sheds around Colombo began turning people away as pumps ran dry, with most expected to run out of petrol by Friday morning.

I have instructed area managers to issue extra stocks should demand go up on account of the IOC shortfall, Jaliya Medagama, Chairman of Ceypetco told LBO on Thursday.

Ceypetco has fuel stocks for 20 to 30 days, with fresh shipments on the way, Medegama said. The corporation owns 200 fuel sheds with a further 600 franchise outlets.

Sri Lankan motorists guzzle 130 mn litres of diesel, 30 mn litres of petrol and 20 mn litres of kerosene each month.

Indian Oil Corp., which has 25 percent market share, has asked the Treasury for one billion rupees of its 7.4 billion rupee unpaid subsidy bill as at end March, to re-stock its sheds.

Diesel stocks are expected to last about another 35 days. As at Thursday, there was no money or word from the Treasury on the payback, LIOC Managing Director K Ramakrishnan said.

The local arm of th