The Government plans to seek legal advice against private fuel companies under the terms of agreements and the powers vested in the Ministry under the Ceylon Petroleum Corporation (CPC) Act, if they attempt to restrict fuel supplies, Energy, Ports and Civil Aviation Minister Anura Karunathilake told Parliament. Responding to questions raised by Samagi Jana Balawegaya (SJB) MP S.M.Marikkar in Parliament yesterday (7), the Minister said that private fuel companies are permitted under their agreements entered with the government to increase fuel prices to cover their costs under the fuel pricing formula.
He pointed out that however, these private fuel companies have not exercised this option of increasing fuel prices to cover their costs under the fuel pricing formula and have instead kept their prices close to those announced by the Ceylon Petroleum Corporation (CPC).
“The government does not currently have the authority to order private fuel companies operating in the country to distribute more fuel to the fuel stations under them due to the nature of the Memorandums of Understanding (MoUs) that have been signed during previous regimes with them which does not allow imposing rules to distribute maximum amount of fuel stocks. However, the Ministry has instructed the companies to maintain minimum fuel stocks in the country in accordance with the agreements entered into with them.”
“A discussion with private fuel operators is scheduled to take place today (7) at the Presidential Secretariat. In case these private fuel companies continue to limit fuel supplies, the government will be compelled to seek legal advice on possible action under the terms of the agreements and the powers vested in the Ministry under the Ceylon Petroleum Corporation (CPC) Act,” the Minister said.
Source: Daily News
