Fuel distributors halt orders over CEYPETCO payment dispute
The Fuel Distributors’ Association has announced that it will cease fuel ordering activities from midnight today (February 28). While the distribution of existing reserves will continue, no new orders will be placed.
This decision comes in response to the Ceylon Petroleum Corporation (CEYPETCO) revoking the 3% discount currently provided to distributors and implementing a new payment adjustment, effective tomorrow.
CEYPETCO Chairman D.J. Rajakaruna stated that this change aligns with a circular issued in March 2022, rendering the current payment system illegal.
Addressing the media this afternoon, the Vice Chairman of the Fuel Distributors’ Association, Kusum Sadanayake, stated:
“From midnight today, we will only sell the fuel we currently have. We will not place any new orders. If the Petroleum Corporation or any other company provides fuel, we will sell it. We are ready to sell any fuel that is given freely. However, we cannot purchase fuel at this price and resell it.”
He further emphasized that fuel distributors supply fuel on a credit facility to all state institutions, including the Presidential Secretariat, using their own funds rather than government provisions.
Therefore, starting tomorrow morning, fuel will not be supplied on credit to any state institution, fuel will only be provided if payment is made in advance.
The association’s firm stance signals potential fuel shortages if a resolution is not reached between CEYPETCO and distributors.

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