Singapore’s Vitol Asia gets 6-month 92 octane petrol supply contract

Thursday, 7 November 2024 02:11 - - {{hitsCtrl.values.hits}}

The Cabinet of Ministers on Monday approved awarding a contract to Singapore-based Vitol Asia Ltd., to supply five shipments of 92 octane petrol, totalling 1.5 million barrels, over the next six months.

“The contract, which covers the period from 1 December 2024 to 31 May 2025, was approved following recommendations by the Standing Technical Evaluation Committee and a Special Standing Procurement Committee,” Cabinet Spokesman and Minister Vijitha Herath said at the post-Cabinet meeting media briefing yesterday.

Under the agreement, payments will be made via Letters of Credit (LC), with a 30-day payment period from the issuance date of the bill of lading. This flexible payment approach is designed to optimise Sri Lanka’s foreign exchange management while ensuring steady fuel supplies.

“The Ceylon Petroleum Corporation (CPC) initially invited bids under a long-term contract to secure reliable fuel shipments. Alternative payment methods, including immediate payments at the time of issuance from registered CPC storage facilities, were considered as part of the tender terms. In total, seven bids were submitted, with three bids disqualified during the initial evaluation,” the statement comprising weekly Cabinet decisions issued by the Government Information Department noted.