President Anura Kumara Dissanayake has announced that the government will move to revise agreements signed by previous administrations with private fuel companies, stating that existing provisions have restricted the state’s capacity to regulate fuel prices and protect consumers.
Speaking at a National People’s Power (NPP) public rally in Ibbagamuwa on Sunday (Oct. 11), the President highlighted that these legacy agreements have created obstacles in holding private fuel distributors accountable when they refuse to distribute stock at prevailing rates. He pointed out that certain private filling stations are holding fuel supplies but declining to sell them unless prices are raised, noting that the terms established when these companies entered the market legally tied the government’s hands from taking direct action.
The President revealed that private fuel distributors had demanded steep increases, with one operator requesting a price hike of Rs. 132 per liter of diesel and another seeking an increase of Rs. 116 per liter. In response, the government restricted the diesel price increase at Ceylon Petroleum Corporation (CPC) outlets to Rs. 10 per liter while maintaining consumer subsidies, advising private entities that they could set their own prices under the current terms while state stations maintain regulated rates.
Key Developments
- Government plans to revise market entry agreements signed with private fuel suppliers to restore regulatory oversight and consumer protections.
- Private companies requested diesel price hikes of Rs. 132 and Rs. 116 per liter, while the CPC limited its increase to Rs. 10 per liter alongside state subsidies.
- The Ceylon Petroleum Corporation has been transitioned into a profitable entity under the current administration.
- CPC’s share of the diesel market has grown to 77%, with the state enterprise prepared to service the remaining 23% if private operators do not meet supply needs.
President Dissanayake affirmed that the CPC has been turned into a profitable institution committed to shielding consumers from volatile global market pressures. Emphasizing that the state-owned supplier now holds a 77% share of the diesel market, he declared that the government is fully prepared to take over the remaining 23% market share if private companies are unable or unwilling to meet demand.