By: Staff Writer
April 27, Colombo (LNW): Sri Lanka will be appointing a panel to draft a law to set up a petroleum regulator with powers to cover liquified petroleum gas, petrol, diesel, kerosene, aviation fuel and lubricants.
The Cabinet of Ministers approved the proposal to establish a Regulator for the Energy Sector. PUCSL will remain as the Electricity sector Regulator and a new Regulator will be introduced for Petroleum, LPG, LNG, Lubricants, Oils & Energy Sectors,” Energy Minister Kanchana Wijesekera said on X.
In a statement, the government said that although the import, refining, distribution and sale of petroleum products including petrol, diesel, kerosene, jet fuel oil, liquefied petroleum gas (LPG) and lubricating oil are carried out within the existing legal framework, the sector is not subjected to a wide range of regulation or a petroleum mechanism.
Meanwhile, as private entities are involved in the import and distribution of products, the need for an independent, dynamic, effective and efficient regulatory mechanism has been identified to find solutions to problems, address challenges in the sector and safeguard the interests of consumers, investors and other stakeholders.
Accordingly a committee was appointed to propose the draft frame work for the Energy Sector Regulator in two months on Fair Pricing Mechanisms & Pricing Formulas, Quality Assurance, Compliance Monitoring, and Safety in Unloading, Storage and Distribution.
The grame work will also cover Environmental Standards, Industry Collaboration & Stakeholder Engagement, Dispute Resolution, Public Awareness & Education, Emergency Response and Risk Management.”
Several private establishments are engaged in import and distribution of petroleum products in the island.
The regulator will have wide powers to “address challenges in the sector, ensure quality of products, and protect the interests of the public and investors,” a government statement said.
The Public Utilities Commission of Sri Lanka (PUCSL) will retain its role as the regulator for the electricity sector, while the forthcoming regulator will assume responsibility for governing various aspects of the petroleum and energy industries.
This separation of oversight is expected to streamline regulatory processes, foster greater accountability, and optimize sector-specific regulations.
A specialized committee has been entrusted with the task of formulating the framework for the Energy Sector Regulator within a concise timeline of two months.
This separation of oversight is expected to streamline regulatory processes, foster greater accountability, and optimize sector-specific regulations.
A specialized committee has been entrusted with the task of formulating the framework for the Energy Sector Regulator within a concise timeline of two months.
This framework is envisioned to encompass a comprehensive spectrum of regulatory considerations, ranging from fair pricing mechanisms and quality assurance to compliance monitoring and environmental standards.
