News Today: Sri Lanka’s government confirms its decision to end additional fuel distributor commissions despite protests from industry stakeholders.

The Sri Lankan government has reaffirmed its decision to eliminate additional commission payments to fuel distributors, despite strong opposition from industry stakeholders.

Government Spokesman Minister Nalinda Jayathissa emphasized that there will be no reversal of the policy, as it aims to eliminate excessive distributor commissions.

Fuel Supply Returns to Normal

Following concerns over potential shortages, the Ceylon Petroleum Corporation (CPC) confirmed that fuel distribution has stabilized, with supplies being doubled yesterday to address disruptions.

CPC Chairman Janaka Rajakaruna reassured the public that there is no risk of fuel shortages and urged consumers to avoid panic buying.

Fuel Distributors Protest Decision

The Petroleum Distributors Association has warned of operational changes if the government does not reconsider its stance. Distributors have threatened to:

• Stop accepting bank and credit card payments
• Reduce staff and operational hours
• Close fuel stations earlier to cut costs

A crucial meeting between the Petroleum Distributors Association and the CPC Chairman is scheduled for tomorrow, where both parties are expected to discuss the ongoing dispute.

Commission Cut Sparks Outrage

The conflict began when the CPC revised its fuel pricing formula, reducing the distributor commission from 3% to approximately 1.7%. Fuel distributors claim this decision has cut their profits by over 43%, making operations financially unsustainable.

In protest, nearly 500 fuel station owners suspended credit sales to government institutions and halted fresh fuel orders, leading to long queues at fuel stations over the weekend.

As tensions escalate, industry experts warn that further disruptions could impact fuel availability if a resolution is not reached soon.