The Government will seek legal advice on possible action against private fuel companies if they continue 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 yesterday (07), the Minister said the Government would consider action under the agreements signed with private fuel companies and the powers granted to the Ministry under the Ceylon Petroleum Corporation (CPC) Act.
Minister Karunathilake explained that private fuel companies are permitted under their agreements with the Government to increase fuel prices in line with the fuel pricing formula to recover their costs.
However, he noted that the companies had not exercised this option and had instead maintained prices at levels close to those announced by the CPC.
The Minister said the Government currently does not have the authority to compel private fuel companies to increase the quantities of fuel supplied to their respective filling stations. He explained that Memorandums of Understanding (MoUs) signed with the companies by previous administrations do not provide for imposing requirements on them to distribute maximum fuel stocks.
Nevertheless, the Ministry has instructed the companies to maintain minimum fuel stocks in the country in accordance with the agreements they have entered into with the Government.
He also said a meeting with private fuel operators was scheduled to be held yesterday (07) at the Presidential Secretariat to discuss the issue.
“If these private fuel companies continue to restrict fuel supplies, the Government will be compelled to seek legal advice on possible action under the agreements and the powers vested in the Ministry under the CPC Act,” the Minister said.
