Fuel distributors agree to new CPC commission formula

By Rathindra Kuruwita and Chaminda Silva

 Fuel distributors have agreed to the new commission formula introduced by the Ceylon Petroleum Corporation (CPC), Cabinet Media Spokesperson Minister Dr. Nalinda Jayatissa announced at the weekly Cabinet press briefing yesterday (04).

The new formula, which replaces the previous 3% commission payment for fuel sales, has been implemented following discussions between the CPC, fuel station owners, and members of the fuel distributors’ association.

Minister Jayatissa emphasised that the agreement marks a crucial step forward in streamlining fuel distribution and ensuring transparency in pricing mechanisms.

“An agreement has been reached to implement the formula introduced by the CPC. Work will proceed in accordance with that agreement,” Minister Jayatissa said.

He said that fuel distributors have raised several concerns, which will be addressed during a follow-up discussion scheduled for March 18.

The meeting, set to take place in the morning of March 18, will focus on reviewing the new pricing system and discussing proposals from fuel distributors. This review will occur after two weeks of fuel sales under the new mechanism, allowing stakeholders to assess its impact on profits and operational efficiency.

CPC Chairman D.A. Rajakaruna confirmed that fuel sales will continue uninterrupted at all stations. “If any adjustments are required, they can be made after the upcoming discussion,” he said, assuring the public of a smooth transition to the new system.

Chairman of the Fuel Station Owners’ Association Kumar Rajapaksa highlighted that the new formula will be reassessed following the review meeting. “We will evaluate the outcomes and make necessary adjustments to ensure fairness and sustainability for all parties involved,” he added.

Minister Jayatissa reassured the public that there is no fuel shortage or disruption in supply. “The government is committed to ensuring a stable and efficient fuel distribution system. The new formula is a step in the right direction, and we will continue to work closely with all stakeholders to address their concerns,” he said.