President Anura Kumara Dissanayake says the government will take steps to revise agreements signed by previous administrations with private fuel companies, claiming that certain provisions have restricted the government’s ability to regulate fuel prices and protect consumers.
Addressing a National People’s Power (NPP) public rally in Ibbagamuwa on Sunday (Oct. 11), the President said existing agreements had created difficulties in taking action against private fuel suppliers refusing to sell fuel at the prevailing prices.
“Some private companies have fuel stocks at their filling stations, but they are refusing to sell unless prices are increased,” the President said.
“We cannot take legal action against them because of the agreements signed when they were allowed to enter the market. These are agreements that have tied our hands. We will revise them,” he said.
The President said private fuel companies had requested significant price increases, with one company seeking a Rs. 132 increase per liter of diesel and another requesting Rs. 116.
However, he said the government had limited the diesel price increase at Ceylon Petroleum Corporation (CPC) filling stations to Rs. 10 per liter while continuing to provide subsidies to consumers.
“We have informed them that they can sell fuel at whatever price they choose. We will continue selling at our price. There is no other solution under the existing agreements,” he said.
President Dissanayake also claimed that the CPC had been transformed into a profitable institution under the current administration.
He said the government was committed to strengthening the state-owned fuel supplier and ensuring that consumers were protected from excessive price increases despite rising global fuel costs.
The President further said the CPC’s share of the diesel market had increased to 77%, adding that the state-owned company was prepared to meet demand if private suppliers were unable to serve the remaining market.
“If they cannot handle the remaining 23%, we will do it ourselves,” he said. (Newswire)
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