The government has reaffirmed its stance on eliminating the additional commission paid to fuel distributors, despite ongoing protests from industry stakeholders. Government Spokesman Minister Nalinda Jayathissa stated that there would be no reversal of the decision, which aims to eliminate excessive payments.
The fuel distribution situation across the country has returned to normal, with the Ceylon Petroleum Corporation (CPC) confirming that fuel supplies were doubled yesterday to mitigate shortages. CPC Chairman Janaka Rajakaruna assured that there is no risk of fuel shortages and urged the public to refrain from panic buying.
However, the Petroleum Distributors Association has warned of potential operational changes if the government does not reconsider its decision. The association stated that distributors might stop accepting bank and credit card payments, reduce staff, and close fuel stations earlier to cut costs. A crucial meeting with the CPC Chairman is scheduled for Tuesday to discuss the issue further.
The dispute arose after the CPC revised the fuel pricing formula, reducing the commission for distributors from 3% to approximately 1.7%. Distributors claim this move has slashed their profits by over 43%, making operations unsustainable. As a form of protest, nearly 500 fuel station owners suspended credit sales to government institutions while also halting fresh fuel orders, triggering long queues at fuel stations over the weekend.
Despite these claims, CPC Chairman Rajakaruna dismissed concerns, stating that the revised formula still allows distributors to make a reasonable profit. He also said that the government remains committed to ensuring fuel affordability for the public rather than subsidizing commissions for private distributors. (NewsWire)
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