ECONOMYNEXT – Sri Lanka’s state-run fuel retailer Ceylon Petroleum Corporation (CPC) will bear some losses by filling stations for only one day due to an advanced fuel price reduction, Energy Minister Kanchana Wijesekera said.
Wijesekera declared reduced fuel prices with effect from Wednesday midnight and retail fuel stations which have ordered fuel for today will have to incur a loss because they will have to sell at a lower price after buying at a higher price before midnight today.
“People who have ordered fuel for today may be facing a loss,” Wijesekera told reporters on Wednesday.
“For the first time, in order to avoid any losses for buyers there will be a fair play and some part of the losses will be borne by the CPC. We ask the distributors to continue and buyers to buy fuel as ordered. ”
Usually the price revisions are done according to a formula during the first week of every month. However, Wijesekera said President Ranil Wickremesinghe has advised to advance the price reduction due to the protest by CPC trade unions
The price reduction announcement came after many motorists were forced to stay in queues because the trade union protest had delayed the distribution from the CPC’s storage terminals.
The CPC trade unions protested against the government move to allow three foreign companies to enter into local fuel distribution. Activists from the unions said the move, which they refer to as ‘privatization’ could be detrimental to the CPC. (Colombo/March 29/2023)