Government Opens Spot Tenders, Fast-Tracks Ship-Based Fuel Supplies

COLOMBO (News 1st); President Anura Kumara Dissanayake said the government has initiated a series of urgent measures to ensure uninterrupted fuel and energy supplies, including the issuance of multiple spot tenders and the establishment of a special mechanism for emergency fuel procurement.

Speaking on the process, the President said several spot tenders had already been issued, with one opened today. Through this tender, bids were received from highly reliable suppliers for diesel, crude oil, and petrol. The government expects to award these tenders to the selected suppliers with the aim of covering delays experienced in recent fuel deliveries.

He noted that there is an ongoing risk that fuel shipment vessels supplying power generation could face disruptions while en route. As an additional precaution, the government has taken steps to award tenders specifically for ship-based fuel supply, a process that is being completed today. In addition, another diesel import tender is expected to be awarded tomorrow, for which reliable suppliers have already been identified.

According to the President, the most critical requirement at this moment is securing trustworthy suppliers, and the government has taken action with that priority in mind. However, he acknowledged that a price increase has been observed across the tenders. Under normal circumstances, the premium price remains below three US dollars, but in the current situation, the premium has exceeded three dollars, leading to higher costs. Despite this, the government’s primary objective remains ensuring the uninterrupted supply of energy, and it intends to proceed with awarding the tenders.

President Dissanayake also highlighted challenges that typically arise during global supply disruptions. He said that in such situations, small black markets tend to emerge, with ships at sea being traded back and forth and multiple agents intervening for the same vessel. This, he noted, is a common feature of crisis conditions. Unlike the private sector, the public sector does not have the flexibility to make instant purchases, but this limitation has also been taken into account in the government’s response.

To address this, a committee of competent officials has been appointed and authorized to make rapid decisions and facilitate emergency fuel purchases when necessary. The President said that if any party is able to divert an existing vessel to Sri Lanka at short notice, the government has provided an opportunity for such arrangements to be considered.

The committee was appointed by the Cabinet, and as all government procurements in Sri Lanka fall under the National Procurement Commission, the necessary approvals have been obtained from the Commission. Decisions made by the committee will be submitted to the Cabinet for approval. President Dissanayake said this mechanism is one of the key steps being implemented to secure fuel supplies without delay, adding that the government is moving forward by adhering to this process.