President Anura Kumara Dissanayake says steps will be taken to amend agreements previously signed with private fuel companies.
Addressing a National People’s Power (NPP) rally in Ibbagamuwa yesterday (Oct. 11), the President said certain conditions in agreements signed with private fuel companies by previous governments had restricted the Ceylon Petroleum Corporation (CEYPETCO) from setting prices flexibly and exercising control over the market.
He said the Government would prioritise consumer interests rather than allow private companies to operate solely according to their commercial preferences.
The President further emphasised that CEYPETCO had been transformed from a loss-making institution into a profitable one and that the Government was committed to regulating fuel supplies without placing an additional burden on the public.
Speaking further, the President said, “We have now been in office for 02 years. We have recruited only 10 people to CEYPETCO. Of them, 04 engineers are overseeing newly established projects. The other 06 are working on the projects we have launched to supply fuel to aircraft at Bandaranaike International Airport (BIA), Katunayake. Previous governments recruited thousands of people and destroyed these institutions. Currently, we have strengthened these institutions. Now, CEYPETCO sells fuel at lower prices. Private companies say they cannot sell at those prices. Fuel from the government’s CEYPETCO is cheaper, and private companies say they cannot sell at the same price. One company is asking for diesel prices to be increased by Rs. 132 per litre, and another is seeking Rs. 116 per litre. We did not make those increases. Through CEYPETCO, we increased the price of diesel by only around Rs. 10 per litre, while providing a subsidy of Rs. 70 to contain the burden on consumers. We strengthened the economy to reach that position.
“Currently, some private suppliers are experiencing shortages. Why are they facing shortages? They say that if prices are not increased, they will not sell. We cannot take legal action against them because the agreements signed when they were granted permission to operate contain clauses that restrict us. These are old agreements. We are going to amend them. CEYPETCO’s share of the diesel market used to be 58%. Now, its share of the diesel market is 77%. If the others cannot supply the remaining 23%, we will do it ourselves. Remember that. We have informed them that they can sell at the prices they want, if they wish. We will sell at our prices. There is no other answer, given the agreements that were signed with them,” the President added.
(Video: Ada Derana)
