The Energy Ministry will seek legal advice and take action against private fuel suppliers in accordance with their agreements with the Government and the powers vested in the Ministry if they continue to restrict fuel supplies to filling stations, Energy Minister Anura Karunathilaka said.
Speaking in Parliament yesterday (7), he said the Ministry was already in discussions with private fuel suppliers and would consider action if they continued to withhold fuel from the market.
“We are discussing this with them. If they continue to refrain from distributing fuel in this manner, we will obtain legal advice on the action that needs to be taken in terms of the agreements and the powers vested in the Ministry, and act accordingly,” he said.
His comments came amid fuel queues at filling stations in several parts of the country, with motorists saying that some stations had fuel, including Octane 92 petrol, but were not releasing it to customers. Long queues have also been reported amid the prevailing hot weather.
Private distributors, including Lanka Indian Oil Corporation, China Petroleum and Chemical Corporation (Sinopec) and RM Parks Private Limited, have reduced the quantities of fuel supplied to the market in recent times. However, the Ministry has stated that it does not have the power under the existing agreements to order the companies to release specific quantities of fuel to individual filling stations.
Karunathilaka said the existing agreements allowed the companies to sell fuel at prices they preferred, based on the prices calculated under the pricing formula. However, he said they were not doing so.
The Ceylon Petroleum Corporation (CPC) determines the fuel price, which is then announced by the Ministry, while private companies set prices close to CPC prices, he said.
The Minister said the Government could not bear the additional financial burden that would arise from private companies selling fuel at prices closer to CPC prices.
Meanwhile, Prime Minister Dr Harini Amarasuriya told Parliament that the CPC had imported 18,687,305.29 barrels of fuel between 1 January and 31 August at a total cost of USD 2,240,403,464.72. She said the CPC had not paid more than the market premium for any shipment. The Government had spent Rs. 500,579,700,348 on fuel subsidies during the same period.
The Petroleum Dealers’ Association has also urged the Government to ensure a continuous fuel supply to filling stations. Its Deputy Chairperson Kusum Sandanayake said foreign-owned filling stations were among those receiving inadequate supplies, creating difficulties in meeting operational costs.
He said the Association expected the Energy Ministry to intervene and resolve the issue with the private companies, adding that dealers were ready to distribute whatever quantities of fuel they received to consumers without delay.