New committee to develop regulatory framework for petroleum products

• Power and Energy Minister Kanchana Wijesekera says committee tasked to draft framework for energy sector regulator within two months

The Cabinet of Ministers cleared the appointment of a committee, chaired by the Power and Energy Ministry which is tasked with studying and formulating a comprehensive legal framework concerning the import, refinery, distribution and marketing of petroleum products.

Although the current legal framework governs aspects of petroleum product importation, refinery, distribution and marketing, there exists a gap in terms of a broader regulatory mechanism. “With multiple private entities involved in these activities, the need for an independent, dynamic and efficient regulatory mechanism has become evident,” Cabinet Co-Sponsor and Minister Bandula Gunawardena said at the post-Cabinet meeting media briefing yesterday.

He said the committee’s mandate includes studying the existing practices and challenges within the sector, identifying solutions to enhance product quality and ensuring the protection of consumer rights, as well as the interests of investors and other stakeholders.

“By establishing a robust regulatory framework, the Government aims to promote transparency, accountability, and fair competition within the sector, ultimately benefiting consumers and stakeholders alike,” Gunawardena said in response to a query posed.

The proposal to this effect submitted by Power and Energy Minister Kanchana Wijesekera was approved by the Cabinet of Ministers at its meeting on Thursday. 

Separately, Minister Wijesekera noted via ‘X’ that the Public Utilities Commission of Sri Lanka (PUCSL) will remain as the electricity sector regulator and a new regulator will be introduced for petroleum, LPG, LNG, lubricants, oils and energy sectors. 

“Accordingly a committee was appointed to propose the draft framework for the energy sector regulator in two months on fair pricing mechanisms and pricing formulas, quality assurance, compliance monitoring, safety in unloading, storage and distribution, environmental standards, industry collaboration and stakeholder engagement, dispute resolution, public awareness and education, emergency response and risk management,” he added .