Fuel Distribution Disparities Emerge as Private Companies Face Scrutiny

COLOMBO (News 1st); Sri Lanka’s fuel distribution landscape has come under renewed scrutiny as concerns emerge over the performance of privately operated fuel outlets amid the ongoing fuel management measures.

After the government broke its monopoly on fuel distribution, three private companies, IOC, Sinopec, and RM Parks, were permitted to import and retail fuel in competition with the Ceylon Petroleum Corporation (CPC). These companies currently operate alongside CPC in importing fuel and supplying it through retail outlets across the country.

However, the Fuel Station Owners’ Association has raised concerns that, under the prevailing conditions, fuel stations operated by foreign companies are not issuing fuel as required.
Speaking on the matter, 

Chairman of the Fuel Station Owners’ Association, Kumar Rajapaksa, said that at present, proper fuel distribution is being carried out only by the Ceylon Petroleum Corporation.

“These foreign fuel distribution companies have severely restricted their fuel supplies,” he said, adding that as a result, residents in areas served by these stations are flocking to CPC‑operated fuel stations, leading to congestion and long queues.

He noted that while the government is now regulating morning fuel distribution in an organised manner, intervention is urgently needed to address the uneven supply by private operators.

In the meantime, checks were conducted in several parts of the island to assess fuel distribution at private company‑owned outlets outside of CPC.

Members of the public waiting at an IOC fuel station in Colombo said they had been in queues since early morning, with fuel yet to arrive.

Another commuter said more than 100 three‑wheelers were waiting in line, with no indication of when the bowser would arrive.

At a Sinopec fuel station in Colombo, customers said they were told fuel would arrive on a second trip, leaving them with no option but to wait after spending hours in queues. Fuel station employees at a Sinopec outlet in Kandy said they were receiving fuel only once a day and could not confirm whether additional supplies would arrive.

In response to these concerns, Lanka IOC stated that fuel is being issued to stations as usual.

Sinopec also said that its fuel distribution operations were carried out normally today.

However, when inquiries were made regarding Shell fuel stations operated by RM Parks, no response was received.

Addressing whether companies other than CPC are failing to issue fuel adequately, Chairman of the Ceylon Petroleum Storage Terminals Limited (CPSTL), D.A. Rajakaruna, acknowledged that some issues have emerged.

He said the relevant Ministry Secretary would summon the companies concerned and issue necessary instructions. Rajapakuna explained that IOC, Sinopec, RM Parks, and CPC all import fuel separately, store it in common facilities, and request quantities for distribution to their retail outlets, which are then issued by CPSTL according to demand.

He added that while he could not confirm whether some companies were limiting distribution due to expectations of price increases, there should be no justification for restricting fuel issuance. 

Rajapaksa stressed that the authority to regulate such matters lies with the Ministry and said the Ministry would take the necessary steps to address the issue.