The Ceylon Petroleum Corporation (CPC) plans to establish 75 new fuel stations as a matter of urgency to address disruptions to fuel supplies in several areas caused by private fuel companies restricting fuel distribution.
Quoting CPC Chairman D.J.A.S. De S. Rajakaruna, The Sunday Times reported that approval had been granted to establish the new fuel stations, particularly in areas where there are no CPC outlets.
The number of new stations could be increased further depending on demand, it is reported.
Minister of Energy, Ports and Civil Aviation Anura Karunathilaka has said that people in certain areas outside the main urban centres have been facing difficulties because fuel stations in those areas are owned exclusively by private companies.
He said the Government expects to change this situation by establishing CPC fuel stations in those areas as well.
Of the 1,440 fuel stations operating across the country, 887 are run by the CPC, 273 by Lanka IOC, 150 by Sinopec Energy Lanka and 130 by RM Parks.
It is also reported that the CPC accounts for more than 80 per cent of the country’s diesel distribution and supply.
The Minister said that although private fuel companies are entitled under their agreements to revise prices to cover their costs, they have been restricting fuel distribution while maintaining prices close to those announced by the CPC.
He also alleged that, despite having adequate fuel stocks, these companies were not releasing sufficient quantities to the market.
The Minister said that the Attorney General’s advice had been sought on possible further action in relation to the issue, taking into account the existing agreements and the powers vested in the Ministry under the Ceylon Petroleum Corporation Act.
Meanwhile, the association representing private bowser operators engaged in fuel transportation has requested a revision of transport charges.
Association Chairman A.M.H. Adhikari said the association was seeking a fare increase of at least 20 per cent, taking into account rising costs, including those of diesel, tyres, batteries, vehicle maintenance and employees’ wages.
However, details have yet to be reported on when the 75 new fuel stations will commence operations, where they will be located, or how much the project will cost.