President Anura Kumara Dissanayake stated that agreements already signed with private fuel companies will be amended in the future.
The President made this statement while addressing a National People’s Power (NPP) rally in Ibbagamuwa.
He said certain conditions in agreements signed with private fuel companies had limited the Ceylon Petroleum Corporation (CPC) in its ability to determine fuel prices flexibly and regulate the market.
The President stressed that the government would take measures to protect consumers rather than allow private companies to operate solely according to their own preferences.
He further stated that the CPC had been transformed from a loss-making institution into a profitable entity, adding that the government was committed to ensuring a regular fuel supply without placing an undue burden on the public.
President Dissanayake also said that only 10 employees had been recruited to the CPC during the government’s two years in office. Of them, four engineers are overseeing newly established projects, while the other six are involved in initiatives to provide fuel to aircraft at the Katunayake airport.
He said previous governments had weakened state institutions through large-scale recruitment, whereas the current administration had focused on strengthening them.
The President noted that the CPC was selling fuel at lower prices than private companies, which had reportedly sought substantial increases in diesel prices.
According to the President, one private company had requested a Rs. 132 increase per liter of diesel, while another had sought an increase of Rs. 116.
However, he said the government had limited the diesel price increase to approximately Rs. 10 per liter through the CPC, while providing a subsidy of Rs. 70, in order to minimise the burden on consumers.
He further claimed that some private fuel companies were experiencing shortages because they were unwilling to sell fuel without the requested price increases.
The President said the existing agreements prevented the government from taking legal action in such circumstances, making amendments to the agreements necessary.
He also revealed that the CPC’s share of the diesel market had increased from 58% to 77%.
“If they cannot supply the remaining 23%, we will do it ourselves,” the President said, adding that private companies had been informed that they could sell fuel at their preferred prices while the CPC would continue selling at its own prices, in accordance with the existing agreements.
