President pledges to amend private fuel deals as CPC diesel share rises to 77%

Monday, 12 October 2026 04:02 - - {{hitsCtrl.values.hits}}

President Anura Kumara Dissanayake

Private companies reportedly sought diesel increases of Rs. 116–132 per litre; President says Govt. contained increase via CPC to around Rs. 10

President Anura Kumara Dissanayake yesterday announced plans to amend agreements with private fuel companies, accusing existing contractual conditions of restricting the Government’s ability to respond flexibly to price pressures and supply disruptions.

Addressing a National People’s Power (NPP) rally in Ibbagamuwa, the President said the agreements limited the Ceylon Petroleum Corporation’s (CPC) ability to regulate the market and take legal action when private suppliers failed to maintain supplies.

He said the Government would prioritise consumer interests rather than allow private companies to operate solely according to their commercial preferences.

The President also claimed that the CPC’s share of the diesel market had increased from 58% to 77%, signalling a greater reliance on the State-owned supplier amid reported shortages at some privately operated filling stations.

“If they cannot supply the remaining 23%, we will do it ourselves,” he said.

Dissanayake said private fuel companies had been informed that they could sell fuel at prices of their choosing under the existing agreements, while the CPC would continue to sell at its own prices.

However, he argued that the contractual framework needed to be revised to give the Government greater flexibility to address supply gaps and protect consumers.

The President said private fuel companies had sought substantial increases in diesel prices, with one company requesting an increase of Rs. 132 per litre and another seeking Rs. 116 per litre.

He said the Government had limited the increase through the CPC to around Rs. 10 per litre, while providing a subsidy of Rs. 70 to contain the burden on consumers.

The President did not provide further details on the subsidy arrangements or the proposed amendments to the private companies’ contracts.

He also alleged that some private suppliers were experiencing shortages because they were unwilling to sell fuel without the price increases they had requested.

According to Dissanayake, existing agreements constrained the Government’s ability to pursue legal action in such circumstances, making contractual amendments necessary.