24 June 2024 10:09 am Views - 1603
Colombo, June 24 (Daily Mirror) - Despite the presence of some global fuel giants in retail trading, consumers are yet to benefit from competitive price reductions substantially prompting the government to mull tightening their profit margins through a Cabinet decision in the future, a top official said.
Power and Energy Minister Kanchana Wijesekera repeatedly said that multiple players would lead to competitive price reductions for consumers. However, his statement seems to be nothing but words with the public left at the receiving end with high fuel costs.
In a bid to liberalize fuel distribution and trading and increase competition, the government awarded the licences to China’s Sinopec, United Petroleum of Australia and RM Parks of USA in a collaboration with Shell Plc to enter the fuel retail market in Sri Lanka.
They were to assign 150 dealer-operated filling stations each for fuel trading.
Besides that Lanka Indian Oil Company (LIOC), as a foreign fuel giant, has been in the country since 2003 in fuel trading.
Currently, Sinopec and LIOC engage in trading along with the state- owned Ceylon Petroleum Corporation which accounts for the biggest market share.
However, only marginal price variation is available among them at the moment.
Asked about the matter, a top official of the Power and Energy Ministry said that the market forces had not prevailed upon these players to offer competitive price rates yet.
“That is also due to the nature of the product which is commonly sought after by consumers. However, we will take a Cabinet decision soon to reduce the profit margin currently stipulated. That is in the range from one to four percent. We want to reduce it further in the current pricing formula,” he said.
Sri Lanka revises fuel prices every month according to a formula.