Fuel Dealers Dispute CPC’s Rs. 36.4 Bn Profit Over Margin Cuts 📈

Sri Lankan fuel dealers have challenged the Ceylon Petroleum Corporation (CPC) regarding its reported Rs. 36.4 billion profit for 2025, alleging the figures are inflated by "unlawful deductions" from dealer commissions. • Profit Discrepancy: While CPC reported a profit of Rs. 36.4 Bn in 2025 (up from Rs. 34.2 Bn in 2024), dealers claim this growth stems from reducing their margins rather than operational efficiency. • Margin Reductions: The Petroleum Dealers’ Association alleges CPC unilaterally slashed dealer margins from 3% to 1.5% effective 1 March 2025. In contrast, international oil companies in Sri Lanka reportedly maintain the 3% margin. • Transparency Concerns: Since October 2024, the Ministry of Power and Energy has allegedly ceased publishing the fuel pricing formula and cost components during price revisions, leading to calls for greater accountability. • Impact on Energy Retail: The Association warns that the margin cut threatens the viability of nearly 200 cooperative stations and numerous rural outlets, critical for energy distribution and rural employment. • Regulatory Framework: Dealers are demanding a return to the 2022 Cabinet-approved formula, which allocated specific margins (V2h component) to ensure a stable fuel market for both state and private players.