President Anura Kumara Dissanayake has announced plans to establish 75 new fuel stations under the Ceylon Petroleum Corporation (CPC) as the government moves to address mounting concerns over the conduct of private fuel suppliers and safeguard Sri Lanka’s energy security. Addressing the Sri Lanka Economic & Investment Summit, President Dissanayake stated that sites have already been identified for the state-run outlets, targeting areas where consumers remain heavily reliant on private distribution networks.
The President criticized select private suppliers for artificially restricting fuel distribution despite maintaining adequate stocks in storage facilities, labeling such behavior unacceptable. While private firms were originally brought into the domestic market to foster competition, Dissanayake noted that several operators have failed to match CPC pricing, questioning whether the public should be forced to shoulder a price disparity of Rs. 132 per liter of diesel between different suppliers.
Highlighting the performance of the state-owned enterprise, the President revealed that the CPC has recorded approximately Rs. 28 billion in profits, which the government intends to partly deploy to shield consumers from rising fuel costs. Additionally, national diesel supplies have been secured through December supported by a subsidy of roughly Rs. 70 per liter. While Dissanayake emphasized that fuel subsidies should primarily benefit vulnerable demographics such as farmers and small business operators, he noted that existing data deficiencies currently hinder targeted delivery, with discussions now underway to build an effective distribution mechanism.
Addressing wider energy sector issues, President Dissanayake raised concerns regarding private gas companies contributing to shortages, contrasting their conduct with the state-owned gas company, which has held prices stable against broader market pressures. In response to the ongoing friction with private fuel operators, the government has referred existing commercial agreements to the Attorney General for formal legal review.
Key Developments
- 75 new CPC fuel stations to be established, focusing on regions currently dependent on private distributors.
- The CPC generated roughly Rs. 28 billion in profits, with portions earmarked to cushion consumer price shocks.
- Diesel supplies guaranteed through December with an approximate subsidy of Rs. 70 per liter.
- Agreements with private fuel operators submitted to the Attorney General for scrutiny amid concerns over supply withholding and a Rs. 132 per liter price difference.
- Government initiates policy discussions to refine subsidy targeting for farmers and small enterprises.
Reaffirming the administration’s policy to reinforce state-owned energy enterprises to ensure continuous supply, President Dissanayake warned private firms against disrupting distribution networks, asserting that no commercial entity has the right to jeopardize the nation’s economic and social stability.