Govt. committee flags inflation risks from insufficient fuel quotas

Transport, Highways and Urban Development Minister Bimal Rathnayake 

• Acknowledges current fuel quotas insufficient to meet industrial distribution needs
• Five-member team comprising CPC officials appointed to evaluate needs across Ministries and industries, ensure smooth supplies of fuel 

A Government-appointed committee monitoring the supply of essential goods has warned of possible price increases ahead of the Sinhala and Tamil New Year, citing insufficient fuel quotas constraining domestic distribution.

According to a statement from the President’s Office, the Committee for Monitoring the Distribution of Essential Goods, set up in response to the economic shocks from the ongoing Middle East war, met on Saturday to discuss urgent measures.

“It was noted that requests have been made by industrialists indicating that the current fuel quota allocated to vehicles for the distribution of their products across the country is insufficient. It was further discussed that, if these concerns are not addressed, there is a likelihood of an increase in the prices of goods, which could in turn cause significant hardship to the public during the festive season,” the statement said.

“The Committee also discussed the issuance of fuel for the distribution of essential food items by State and private institutions, including supermarkets, wholesale importers, tourism-related service providers, hotels, and other service-providing organisations.”

The Committee noted that requests for increased fuel quotas from these institutions should be considered, with action taken where necessary. It was also decided that such requests should be forwarded to the Energy Ministry through the relevant line Ministries.

Attention was also drawn to the need for the implementation of a QR code system for fuel issuance to other sectors, including the agriculture and fisheries industries. The system will be based on letters issued on the recommendation of relevant Government officials, including agricultural research officers, replacing the previous method of direct allocation.

The Committee also decided to appoint five officials from the Ceylon Petroleum Corporation (CPC) to cover all Ministries, with a mandate to examine fuel-related issues and undertake necessary interventions. These officials will coordinate with institutions under each Ministry to address bottlenecks.

These matters were discussed at a meeting of the Committee chaired by Transport, Highways and Urban Development Minister Bimal Rathnayake, held on Friday at the Presidential Secretariat.

Rathnayake emphasised the need to ensure a continuous and properly managed fuel supply, with a focus on maintaining the distribution of goods without shortages and preventing excessive price increases during the forthcoming Sinhala and Tamil New Year season.

The discussion was attended by Trade, Commerce, Food Security and Cooperative Development Minister Wasantha Samarasinghe, Power Deputy Minister Arkam Ilyas, Senior Additional Secretary to the President Kapila Janaka Bandara, and CPC Chairman D.J. Rajakaruna.

The Committee is one of four key committees established by the Government to manage the fallout from the US-Israel-Iran conflict. The others include the Energy Committee chaired by the Foreign Affairs, Foreign Employment and Tourism Minister, the Committee for Maintaining the Public Service Systematically chaired by the Prime Minister, and the Committee for Providing Welfare to Various Social Groups chaired by the Rural Development, Social Security and Community Empowerment Minister.