ECONOMYNEXT – Fuel dealers from all companies in Sri Lanka including Ceylon Petroleum Corporation have placed 2,924 orders by Saturday, Charman D J Rajakaruna said after a group of dealers said have halted fuel distribution in a protest over reducing margins.
By Saturday morning 1,696 orders have come from CPC dealers, 471 from Indian Oil Corporation network, 391 by Sinopec dealers and 366 by RM Park Shell dealers, he said.
Rajakaruna said not all dealers were involved in the process.
Though orders are usually not taken after Saturday at 700 am, given that extra fuel was pumped by customers, orders would continue to be taken, he said.
Motorists started to queue up and pump fuel overnight after an association of CPC fuel dealers said they will not place orders after Friday due to a reduction in the dealer margin.
The dealers said they were providing fuel on credit for state agencies and hospitals for months at a time and they will also halt such activities.
Rajakaruna said the dealer margin rose to excessive levels in 2022 amid an economic crisis and when attempts were made to reduce the margin, dealers went to court and halted the process.
The court order has since expired, he said. The CPC came up with a new formular to give margins to dealers with higher margins for smaller petrol sheds, especially int the provinces who had less business volumes.
Newly set up dealers were also given higher margins for 5 years to help them recover capital costs, he said.
However the CPC was prepared to meet dealers and discuss the issue further.
Rajakaruna said the margin of 3 percent, had included taxes from 2022, but it was not so earlier. (Colombo/Mar01/2025)
