Private fuel distribution companies operating in Sri Lanka have sought a cost-reflective pricing mechanism amid rising global fuel and shipping costs, as limited diesel stocks are reportedly being released to some privately operated filling stations despite adequate fuel stocks being available in the country.
Private filling station employees have said they are receiving limited quantities of diesel, while signs indicating that diesel is unavailable have reportedly appeared at some private filling stations.
However, authorities have indicated that there are sufficient fuel stocks in the country and that the situation is not due to an overall shortage of diesel.
A senior official of a private fuel distribution company told media that private operators had jointly raised their concerns with the Energy Minister and the Ministry Secretary.
According to the official, private suppliers are currently incurring losses of around Rs. 170 on every litre of diesel sold due to rising international fuel prices and higher shipping costs.
Private operators have warned that maintaining an uninterrupted diesel supply under the current conditions could become increasingly difficult unless a pricing mechanism reflecting their costs is introduced.
Meanwhile, Ceylon Petroleum Corporation (CPC) Chairman D.J. Rajakaruna has said sufficient fuel stocks remain available at Ceypetco filling stations.
Energy Minister Anura Karunathilaka has said the government may consider the private operators’ request to allow them to adjust fuel prices according to landed costs.
The CPC, however, is expected to continue absorbing at least part of the higher costs rather than immediately passing the full increase on to consumers.
Rajakaruna said petrol and diesel costs had risen sharply due to the conflict in West Asia and that the CPC intends to cushion some of the impact of higher costs on consumers. (Newswire)
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