The Petroleum Distributors Association has warned of potential operational changes if the government does not reconsider its decision to revise fuel distributor commissions.
As part of the protest, distributors are considering stopping bank and credit card payments, reducing staff, and closing fuel stations early to cut costs. A crucial meeting with the Chairman of the Petroleum Corporation is scheduled for Tuesday to address the issue.
The conflict stems from the Ceylon Petroleum Corporation’s (CPC) revision of the fuel pricing formula, which reduced distributor commissions from 3% to approximately 1.7%. Distributors claim this adjustment has slashed their profits by more than 43%, making it difficult to sustain operations.
In response, nearly 500 petrol station owners have taken action by suspending fuel sales on credit to government agencies, halting new fuel orders, and causing long queues at fuel stations over the weekend.
Despite mounting pressure, the CPC remains firm in its stance and has stated that it will not reverse its decision. The ongoing standoff raises concerns over further disruptions in fuel supply across the country.
