Suggestions to manage Fuel Price Reductions without letting Fuel Stations to Run Dry.

Sri Lankans experienced several fuel stations across the country closed over the past two days, while others were seen with long vehicle queues. This is owing to the lowering of stock levels by the fuel stations in anticipation of an impending fuel price reduction.

The continuous fluctuations in fuel prices are inevitable due to the volatility of exchange rates and world market fuel prices. The current practice of letting the market dry out and interrupting the front-end supply chain is a traditional and outdated way of managing change.

I believe that the Ceylon Petroleum Corporation (CPC) can learn from Sri Lankan private entities on how to manage price reductions across the country without impacting its loyal consumers. These organizations typically give cash rebates to retailers and distributors for the stocks that they hold as of the cutoff date. This allows both distributors and retailers to reduce prices without harming their bottom line. The rebate cost is finally absorbed by the company.

The CPC can also implement a similar mechanism with the support of technology. This would allow the CPC to reduce prices without harming innocent consumers, who could otherwise be led to panic.

Here are some specific suggestions:

·??????The CPC can use a centralized database to track the inventory levels of retailers and distributors.

·??????The CPC can use this database to calculate the amount of rebates that need to be given to retailers and distributors.

·??????The CPC can use electronic payments to make the rebate payments quickly and easily or any other alternative.

This system would allow the CPC to reduce prices quickly and efficiently, without disrupting the supply chain or harming consumers.