Sinopec - LIOC requested to increase the price by 200 rupees

Government Media Spokesperson, Minister Nalinda Jayatissa, stated that a fuel price revision was an essential requirement to prevent disruption to the country's fuel supply and ensure its continuous operation. Speaking at a special press conference convened today (March 22) at the Government Information Department premises, the Minister pointed out that the private sector (Sinopec - LIOC), which holds a 43% share of the domestic fuel market, had requested the government for a price increase of nearly two hundred rupees, and if this was not done, there was a serious risk of them suspending fuel imports.

In Sri Lanka, in addition to the Ceylon Petroleum Corporation, private companies import and distribute fuel, accounting for a significant 43% of the total market requirement. As mentioned by the Minister, these companies had initially sought a price increase of Rs. 146 on March 06, which later escalated to nearly Rs. 200. The Minister explained that since private companies do not operate at a loss, if their demands were not met to some extent, they would be unable to finance the upcoming fuel shipments to the country, potentially leading to a complete halt in import activities. He emphasized that while the government could have absorbed the impact if it were merely a small market share of 3% or 4%, suspending an enormous supply of 43% was absolutely not something that could be ignored.

The Minister also revealed that if this price revision had not occurred, in addition to the private sector, the Ceylon Petroleum Corporation would also have faced severe financial crises and cash flow problems. He pointed out that under the current circumstances, selling fuel at a significant loss would force the Corporation to obtain loans at high interest rates for future import activities, and the ultimate result would be consumers facing an even larger price increase in the future. Accordingly, the Minister further stated that the government took this step to prevent future financial crises and ensure the country's overall energy security.