Energy Minister Anura Karunathilaka states that the current fuel shortage is caused by private fuel distribution companies curtailing their supplies. Speaking in Parliament yesterday, he noted that while fuel companies operating in Sri Lanka had requested an increase in local fuel prices to align with global market rates, the government was unable to accede to that request.
The Minister explained that, in response to the situation, measures were taken to provide a subsidy of Rs. 70 per liter of diesel for a period of three months; however, the companies have informed the government that this subsidy is insufficient given the current rise in global fuel prices, compelling them to limit fuel supplies to the domestic market.
Nevertheless, he stated that if private fuel companies continue to restrict fuel distribution to filling stations, he would seek advice from the Attorney General regarding legal actions that could be taken under the Petroleum Act and the powers vested in the Ministry. The Minister stated that discussions with fuel company representatives are scheduled to be held shortly, and that a decision regarding further action will be taken if the companies fail to reach an agreement and continue to restrict distribution.