The Petroleum Dealers’ Association has raised serious concerns over the potential reduction of the three percent discount currently received by fuel distributors, stating that such a move could make it impossible to operate fuel stations, possibly leading to their closure.
Kusum Sandanayake, Vice President of the Association, emphasized that the discount is crucial for maintaining fuel stations and is not considered a commission.
During a media conference held at the N.M. Perera Center in Borella on February 25, he explained that starting in January, VAT will reduce this discount by an additional five to seven percent, placing further financial strain on fuel stations.
In addition, a scheduled salary increase of around thirty thousand rupees for fuel station employees in April will add to the financial burden.
Sandanayake pointed out that these costs cannot be covered by the existing three percent discount.
He warned that without a formal solution from the government, controlling future unrest over fuel-related issues would be nearly impossible.
Meanwhile, Kapila Naotunna, Joint Secretary of the Petroleum Dealers’ Association, highlighted that the association, which has been in operation for nearly fifty years, has never resorted to strike action.
Naotunna elaborated on the situation, saying, “There are around 1,400 fuel stations across Sri Lanka, with over 700 selling less than twenty loads of fuel. The three percent discount is their only source of income. After paying utility bills, pump repairs, and other expenses, they are left with minimal profit. Increasing taxes and costs further, while maintaining the three percent discount, is unsustainable.”
He also voiced frustration over government reports suggesting distributors are taking illegal commissions.
“We have been receiving this discount for a long time, approved and passed by Parliament. We challenge officials to explain what is illegal about it,” he said.
The Petroleum Dealers’ Association urged the government to re-evaluate the discount structure and address the financial challenges facing fuel distributors before the situation escalates further.
Leave a comment