Fuel queues grow in Sri Lanka as distributors halt orders over commission dispute

It is reported that fuel queues continue to be seen near fuel stations in Sri Lanka due to the decision made by the Fuel Distributors’ Association to halt fuel orders.

As a result of this decision, public panic has led to an unusual surge in fuel demand at some fuel stations, causing fuel stocks to run out, with signs displaying “No Fuel.”

Minister of Labour and Deputy Minister of Economic Development, Professor Anil Jayantha, stated that there is no shortage of fuel reserves in the country.

He made this remark during a special statement in Parliament today (March 1) regarding the queues observed near fuel stations.

During his statement, Anil Jayantha pointed out that certain organized groups are attempting to create an artificial fuel shortage to give the impression that there is a fuel crisis in the country.

Meanwhile, the Chairman of the Ceylon Petroleum Corporation (CPC), D.J. Rajakaruna, stated that under the new formula set to be introduced for fuel distributors, they would receive a higher commission than the previous 3%.

Accordingly, the CPC recently decided to abolish the existing 3% commission given to fuel distributors in order to introduce a new commission distribution formula.

Opposing this decision, the Fuel Distributors’ Association announced yesterday (February 28) that they had decided to refrain from placing fuel orders starting today (March 1).

However, the CPC further assured that this decision would not lead to any fuel shortage in the country.

Chairman D.J. Rajakaruna emphasized that the new formula would increase the commission received by fuel distributors.

He explained:

“For the first 15 loads, we will provide 6.96. For the next 15 loads, it will be 6.62. Currently, they claim that about 25 loads are being handled by many distributors. These distributors reportedly earn around 1 million rupees, but they say that even after paying salaries, they are unable to sustain themselves.

Under the new system we are introducing, a distributor handling 25 loads will receive 6.69, which amounts to approximately Rs. 1,103,850.”