Sri Lanka’s fuel supply faces fresh turmoil as private companies suspend distribution over pricing disputes, triggering accusations of backdoor privatization and raising fears of imminent price hikes.
Petroleum trade unions have raised serious concerns over an imminent increase in fuel prices, while also expressing deep suspicion regarding the abrupt suspension of fuel distribution operations this morning. The unions point to the recent arrival of fuel tankers belonging to private companies Sinopec and RM Parks, questioning whether these firms are now withdrawing from distribution activities due to financial losses.
Union representatives noted that despite official assurances that fuel distribution would continue until last night, operations were suddenly halted by this morning. They highlighted that the two vessels which recently arrived in the country belong to private companies, fueling speculation that these firms may be stepping back from supply commitments amid mounting losses.
Recalling their longstanding opposition to the privatization of the energy sector, union officials have reiterated their stance that essential utilities including electricity, fuel, and gas must remain under state control. They argue that the current situation demonstrates precisely why energy security cannot be left to private entities driven by profit motives.
Meanwhile, fuel transport drivers report that despite claims that the Ceylon Petroleum Corporation would be distributing fuel today and tomorrow, no fuel was released for bowsers at the Kolonnawa terminal this morning. Drivers who arrived at the terminal expecting to collect their scheduled loads were forced to turn back empty handed after being turned away.
The situation has created uncertainty across the supply chain, with fuel distribution networks facing disruption just as private sector participation in the energy market comes under renewed scrutiny. The unfolding crisis has reignited debate over the role of private companies like Sinopec and RM Parks in Sri Lanka’s downstream petroleum sector.
