Politics · Sri Lanka Bureau
President vows fuel deal review as CPC market share climbs to 77%
Sri Lanka's President has committed to amending private fuel agreements as the state-owned Ceylon Petroleum Corporation increases its market dominance. The CPC's diesel market share has risen to 77%, marking a significant shift in the country's fuel distribution landscape.
LSN Sri Lanka ·
President Anura Kumara Dissanayake has pledged to review and amend existing private fuel supply contracts, citing the need to regulate the sector more effectively. The commitment comes as the Ceylon Petroleum Corporation strengthens its position in the domestic fuel market, with diesel sales reaching 77% of total market share.
The rising CPC market share reflects efforts to consolidate state control over fuel distribution amid ongoing economic challenges. Private fuel suppliers have maintained a reduced presence in the market as the state corporation expands its operations and supply networks across the island.
The President's pledge to amend private fuel deals suggests the government intends to impose stricter terms on independent operators and potentially increase state oversight of fuel pricing and distribution. Officials have indicated that regulatory changes could affect import arrangements, pricing mechanisms, and supply agreements currently held by private entities.
The move is part of broader efforts to stabilize fuel availability and manage foreign exchange expenditure on petroleum imports. Sri Lanka has faced significant fuel supply challenges in recent years, leading to recurrent shortages and price volatility that have impacted the broader economy and public transportation services across the country.