CPS Explains Why Fuel Supply to Yerevan Bus Company Was Halted

The CPS Oil company has clarified the reasons behind the fuel supply issues to the Yerevan Bus Company, which led to buses not operating on May 12.

CPS issued a statement: “Today, many citizens in the capital were unable to use public transport because the buses did not leave the depot, citing that their fuel supplier, CPS, is failing to meet its obligations. We apologize to our citizens but want to clarify that we are not at fault. In short, the reason for the suspension of fuel supply is the unscrupulous behavior of our partners. We have provided fuel, but they have not paid for months and do not acknowledge their debts as any responsible party would in such circumstances. When the cup of patience overflows, you are forced to adhere to the letter of the contract.”

“CPS has officially stated that it has consistently fulfilled its contractual obligations regarding fuel supply to the Yerevan Bus Company. Furthermore, we have always supported our partners by providing financially better conditions than stipulated in the contract. This was a demonstration of CPS’s goodwill and partnership ethics. In particular, due to the situation created in 2020 (the coronavirus pandemic), we significantly reduced the fuel prices set by the competition, even though we were not obligated to do so under the contract. As a result of our decision, the Yerevan Bus Company saved over 70 million AMD.”

The current supply price for this public transport service provider is exceptionally low. CPS sells diesel fuel to Yerevan Bus at 233 AMD per liter and gasoline at 280 AMD per liter, which is considerably lower than market prices, allowing for no increase in passenger transport costs for our citizens.

Due to the Yerevan Bus Company’s violation of contractual obligations and negligence in payment (frequently delayed), the debts owed to CPS by Yerevan Bus have accumulated to over 190 million AMD for an extended period, creating financial challenges for our company. We have reached out to the management of Yerevan Bus for months, requesting action towards debt repayment but have not achieved results. We have received incomprehensible and unfounded justifications about the influence of force majeure from Yerevan Bus Company.

The sole responsibility for the created situation lies with the management of the Yerevan Bus Company, which has only made a partial payment of the overall debt just a day ago (as of May 12, the debt exceeds 75 million AMD).

It is worth noting that under the competitive supply contract of the Yerevan Municipality, CPS serves not only the Yerevan Bus Company, but also the Yerevan Waste Management, Emergency Medical Services, administrative districts of Yerevan, and other entities, and none of them have complained about our supplies because all parties fulfill their contractual obligations.”