CPC Plans to Open 75 New Fuel Stations Amid Dispute with Private Operators

The Ceylon Petroleum Corporation (CPC) plans to open 75 new fuel stations in the near future as a dispute with private fuel companies over fuel price increases has disrupted services in several parts of the country, senior government officials said.

CPC Chairman D.J. Rajakaruna told The Sunday Times that approval had been granted to open the new stations, particularly in areas without CPC-operated fuel stations. He added that the number could be increased further if necessary.

“In areas where only private companies operate, long queues have formed as these companies have restricted the distribution of both petrol and diesel. We will take all necessary measures to prevent inconvenience to the public,” he said.

Energy, Ports and Civil Aviation Minister Anura Karunathilake told The Sunday Times that the dominance of private operators in outstation areas was causing difficulties for the public. He said this situation needed to be addressed by allowing CPC-operated fuel stations to operate alongside private outlets.

Of the 1,440 fuel stations operating across the country, Ceypetco operates 887. The remaining stations are managed by private companies, including Lanka IOC, which operates 273 stations, Sinopec Energy Lanka, which operates 150, and RM Park, which operates 130. The CPC handles more than 80% of the country’s diesel distribution and supply.

Long queues were observed at several fuel stations this week, while some outlets temporarily closed their shutters.

Meanwhile, the Government has decided to seek legal advice to resolve the deadlock arising from the dispute over fuel price increases. The move will be pursued within the framework of existing agreements and the powers vested in the Ministry under the Ceylon Petroleum Corporation Act.

Minister Karunathilake said private fuel companies were permitted under their agreements to increase prices in accordance with the fuel pricing formula to cover their operating costs.

However, instead of adjusting prices to reflect their costs, the companies have kept their prices close to those announced by the CPC while restricting fuel distribution.

“They have adequate stocks but are not issuing at the optimum level, which has led to the queues,” the Minister said.

He added that the Ministry had sought the advice of the Attorney General on the matter.

Meanwhile, the Ceylon Petroleum Private Tanker Owners’ Association is seeking a revision of fuel transportation charges to reflect the rising costs of operating its business, including expenses for diesel, tyres, batteries, vehicle maintenance and employee wages.

Association Chairman A.M.H. Adhikari said the association was expecting a minimum increase of 20% in transportation charges.

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