By The Pulseline News Desk
The Government has attributed recent fuel price increases by Lanka IOC and Sinopec to the existing structure of Sri Lanka’s domestic fuel market, with Cabinet Spokesman, Minister Nalinda Jayatissa saying the Government faces limitations in directly controlling prices charged by private distributors.
Speaking at the weekly Cabinet media briefing, Jayatissa has said previous governments had expanded the private sector’s share of the domestic fuel market to protect the country’s foreign exchange reserves.
Under the current arrangement, any attempt by the Government to determine fuel prices for private operators would require the Treasury to absorb the additional costs, he has explained.
The Minister’s remarks come amid rising international fuel prices, with Lanka IOC and Sinopec having increased the price of Octane 95 petrol by Rs. 20 per litre, from Rs. 475 to Rs. 495.
Jayatissa has also accused private fuel companies of restricting distribution amid the sharp increase in fuel prices in the Middle East, contrasting their approach with that of the state-owned Ceylon Petroleum Corporation (CPC).
He has said the CPC was continuing to distribute fuel at the highest possible capacity under prevailing conditions while maintaining the existing subsidy mechanism.
The Government is also identifying areas where the CPC does not currently operate filling stations, with plans to establish new outlets to expand the corporation’s distribution network.
According to the Minister, increasing the CPC’s presence would help the Government provide some relief to consumers while ensuring an uninterrupted fuel supply and reducing the risk of market disruptions.
The issue highlights the challenges facing the Government in balancing consumer protection, fuel supply security and the financial implications of subsidising prices within a market shared by state-owned and private operators.
While the Government is continuing to support fuel distribution through the CPC, the expansion of its filling station network is expected to be part of its efforts to improve access to fuel and strengthen its role in the domestic market.
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