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LIOC move worsens govt.’s fuel woes

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Widest difference in fuel pricing formula since LIOC’s entry in 2003

Widest difference in fuel pricing formula since LIOC’s entry in 2003

By Shamindra Ferdinando

Former Energy Minister Udaya Gammanpila says Lanka-India Oil Company (LIOC) has effectively taken itself out from the local petroleum market and is pricing its products in line with economic realities.

The LIOC has achieved that objective by keeping its diesel and petrol prices (per litre) Rs 77 and 92 , respectively, higher than those of Petroleum Corporation (CPC), the leader of the Pivithuru Hela Urimaya says.

Having increased diesel and petrol prices on 06 Feb. and 25 Feb, 202, causing a price difference of Rs. 17 and Rs 27, per litre of diesel and petrol respectively, the LIOC has widen that margin, the widest since its entry into the Sri Lankan market in 2003.

President Gotabaya Rajapaksa removed Gammanpila from ministerial portfolio on 03 March within 24 hours after a group of dissident constituents of the ruling Sri Lanka Podujana Peramuna (SLPP)) unveiled an alternative economic plan.

Responding to The Island queries, lawmaker Gammanpila said that the LIOC couldn’t be faulted for seeking to curtail losses. In terms of an agreement Sri Lanka entered into with India in respect of the LIOC’s entry into local market, the Indian enterprise had the right to increase its prices unless Sri Lanka absorbed the losses.

Attroney-at-law Gammanpila emphasized that current Ceypetco pricing formula didn’t reflect crude oil prices in the world market, which were rising even higher mainly as a result of the war in Ukraine.

Gamini Lokuge succeeded Gammanpila as the energy minister while Pavitradevi Wanniarachchi received the power portfolio, which was previously held by Lokuge.

MP Gammanpila said that the latest hike would make it impossible for the vast majority of people to pump diesel or petrol at LIOC service stations. However, those living in some areas would experience difficulties as they were serviced by LIOC. In terms of the 2003 agreement, LIOC took over one third of service stations at that time managed by the CPC. At the time of the agreement, the countrywide CPC network comprised 300 service stations. Today, LIOC operates 211 service stations.

LIOC blamed rising international prices due to a variety of reasons, including the Russian invasion of Ukraine for increasing its pricing formula for increases announced on Feb 06 and Feb 24 though the latest was blamed on what the Indian enterprise called a significant depreciation of the Lankan Rupee against the USD.

In a statement issued late Thursday night, the LIOC quoted its Managing Director as having said that the depreciation of the Rupee twice in a span of seven days by Rs 57 against USD has directly impacted the landed cost of Gasoil and Gasoline making them dearer by an equivalent amount per litre. Oil and gas prices are also surging as western countries respond to Moscow’s invasion with numerous sanctions to isolate Russia and cut it off from global oil markets. Our current losses are exorbitantly high considering current international prices leaving no other option but to increase the prices of Gasoil and Gasoline. However, it is a painful reality that even after this price increase, there would still be heavy losses at the prevailing international prices.”

LIOC MD Gupta emphasized that LIOC did not receive any subsidy from the Government of Sri Lanka and its losses were calculated based on actual landed cost of the product after considering payment of applicable duties, taxes and other statutory levies including handling charges.

Former Minister Gammanpila said that the country lacked the wherewithal to meet the economic crisis. “There is no point in denying that fact. The sacking of Wimal Weerawansa and Udaya Gammanpila wouldn’t make a difference at all, the PHU leader said, urging the government to work out a proper strategy at least now.

Lawmaker Gammanpila recalled his efforts to establish a special fund to cushion the impact in case of steep increase in fuel prices. The former Minister alleged that his proposal that had been made in March 2021 didn’t find favour with the Finance Ministry. Even after a cabinet sub-committee endorsed the proposal in Oct. 2021, the Finance Ministry simply ignored it, the MP alleged.

Gammanpila said that regardless of repeated assurances given by the government regarding the normalization of fuel supply, the LIOC increase would bring the entire Ceypetco distribution under tremendous pressure. The former Minister pointed out that the LIOC sales volumes would drop sharply to such an extent it would no longer matter.



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Addressing the drug issue in the country must be treated as a national priority – PM

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Prime Minister Dr. Harini Amarasuriya emphasized that addressing the drug issue in the country must be treated as a national priority, highlighting that it must deliver results at the ground level.

A meeting to brief the Prime Minister on the National Strategic Plan for the Management, Treatment and Rehabilitation of Persons with Substance Use Disorders (SUD) 2026–2030 was held with the participation of officials from the Ministry of Health and Mass Media and other key stakeholders on 13th of March at the Temple Trees.

The discussion focused on the proposed national strategy developed to address the growing health, social and economic challenges associated with substance use disorders in Sri Lanka. The strategic plan aims to strengthen prevention, treatment, rehabilitation and reintegration services through a coordinated and evidence-based national approach.

During the meeting, attention was drawn to existing gaps in early identification of substance use disorders, continuity of care, community-based follow-up and reintegration of recovering individuals into society. The plan proposes several key interventions, including strengthening screening and symptomatic treatment at primary healthcare and outpatient levels, improving hospital-based treatment and follow-up services, expanding residential rehabilitation facilities, and enhancing community-based rehabilitation and relapse prevention programmes.

Special emphasis has also been placed on providing targeted support for vulnerable groups, including children and adolescents, pregnant women, mothers with children and prison inmates.

Speaking on the importance of strengthening the national response to drug issues, the Prime Minister Dr. Harini Amarasuriya noted that the drug menace has evolved into a serious social crisis that threatens social stability and security of families and the nation as a whole highlighting that law enforcement and rehabilitation in this regard must be given equal priority.

The Prime Minister further underscored the importance of including public awareness initiatives and responsible media reporting as key components of the national strategy.

The meeting was attended by the Secretary to the Prime Minister Pradeep Saputhanthri, Secretary to the Ministry of Health Dr. Anil Jasinghe, officials from the Department of Prisons, Bureau of Rehabilitation, Sri Lanka Police Ministry of health, Ministry of Public Security and Parliamentary Affairs, Ministry of Justice and National Integration ,Ministry of Defense, Ministry of Education, Ministry of Women and Child Affairs and other relevant department and ministries.

[Prime minister’s Media Division]

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QR code system will be implemented for fuel with effect from 06.00 a.m. today (15th)

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In light of the prevailing geopolitical developments in Middle East, the petroleum product supply chain has been adversely affected. At the same time, the demand for fuel has increased abnormally, resulting in a depletion of the country’s existing fuel stock. Therefore, it has become necessary to carefully manage the available fuel reserves in order to sustain the nation’s economic activities.

Furthermore, it has recently been observed that certain groups have been illegally purchasing fuel in excessive quantities. The Government of Sri Lanka intends to prevent such improper consumption and ensure an uninterrupted fuel supply for the day-to-day needs and economic activities of the general public.

Accordingly, a QR code system will be implemented with effect from 06.00 a.m. on 15.03.2026.

Fuel will not be issued by any operating filling station in the country without a valid QR code from                      06.00 a.m. on 15.03.2026.

Steps to Obtain the QR Code

  1. Users who have already registered for the QR Code
  2. Users whose vehicle ownership and registered mobile number remain unchanged since their initial registration may download their QR Code from the     website https://fuelpass.gov.lk/ starting from midnight on 14.03.2026, using the ‘Vehicle Login’     button.
  3. Users whose vehicle ownership or registered mobile number has changed since their last registration are required to re-register their details through the website https://fuelpass.gov.lk/  starting from 6.00 a.m. on 15.03.2026, using the ‘Vehicle Registration’ button.
  4. Users who have not previously registered for the QR Code and users with newly registered vehicles at
    the RMV
  5. Registration can be completed starting from 06.00 a.m. on 15.03.2026 through the
    website https://fuelpass.gov.lk/, using the ‘Vehicle Registration’ button.

The number of litres allocated for each category of vehicle is stated below.

A special fuel issuance system will be implemented for vehicles required to support national production and essential services.

 

Vehicle Class Capacity control volume for fuel pass

(L)

Buses 60
Motor cycle 5
Van 40
Motor car 15
Motor Lorry 200
Land Vehicles 25
Three Wheeler 15
Special Purpose Vehicle 40
Quadricycle 5

 

[Sri Lanka Transport Board will issue fuel to the private buses].

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Lanka discovers largest groundwater source

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The National Water Supply and Drainage Board (NWSDB) on Friday said the largest groundwater source discovered in Sri Lanka so far had been identified during tube-well drilling near the Pitabeddara Police Station.

Indrajith Gamage, geologist in charge of the Southern Province, said the source recorded a continuous flow of about 10,000 litres (10 cubic metres) per minute, marking the first instance in the country where a groundwater source of that magnitude had been found.

He noted that the previous largest groundwater source was discovered in the Madhu area, which recorded a flow of about 7,000 litres per minute.

According to the NWSDB, the tube well was drilled following geological studies of rock layers and the identification of underground water through fractures in rock strata using specialised technical instruments.

The Board said steps would be taken to distribute water from the newly discovered source to residents facing shortages in Pitabeddara, Morawaka and surrounding areas.

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