President Anura Kumara Dissanayake has announced plans to establish 75 new fuel stations under the Ceylon Petroleum Corporation (CPC), raising concerns over the conduct of private fuel suppliers and their impact on the country’s energy security.
Addressing the Sri Lanka Economic & Investment Summit, the President said the government had identified locations for the new stations, particularly in areas where consumers currently depend heavily on private fuel distributors.
He accused some private suppliers of restricting fuel distribution despite having stocks in storage, saying such practices were unacceptable.
The President said private companies had originally been invited into Sri Lanka’s fuel market to promote competition, but the situation had developed differently, with some suppliers unable to match CPC prices.
He questioned whether consumers should be expected to bear a price difference of Rs. 132 per liter of diesel between suppliers.
Dissanayake said the CPC had earned approximately Rs. 28 billion in profits and was prepared to use part of its earnings to cushion consumers against rising fuel costs.
He also revealed that diesel supplies had been secured until December with a subsidy of approximately Rs. 70 per liter.
The President acknowledged that fuel subsidies should ideally be directed toward vulnerable and deserving groups, including farmers and small businesses. However, he said weaknesses in existing data systems made it difficult to identify beneficiaries and deliver targeted assistance.
He said discussions were underway to develop a mechanism for distributing subsidies more effectively.
Referring to the ongoing dispute with private fuel suppliers, the President said the government had referred existing agreements to the Attorney General for examination.
He also raised concerns about private gas suppliers, accusing them of contributing to shortages while the state-owned gas company had maintained prices despite market pressures.
The President said the government would continue strengthening state-owned energy institutions to protect consumers and ensure uninterrupted supplies.
He warned that private companies should not attempt to disrupt fuel distribution, stressing that no business had the right to place Sri Lanka’s economic and social stability at risk. (Newswire)
The post President announces plans for 75 new CPC fuel stations amid concerns over private suppliers appeared first on Newswire.