⛽ Govt. Warns Legal Action Against Private Fuel Suppliers Amid Distribution Curbs

• Fuel Sector Overview: Government is seeking legal advice under the Petroleum Act to act against private fuel distributors restricting supplies to filling stations over uncompensated losses from capped retail prices. • Subsidy & Pricing Gap: To prevent domestic price hikes despite rising global rates, the Govt. introduced a Rs. 70 subsidy on diesel for three months. Private operators maintain that losses persist as operational costs exceed the subsidy. • Market Share Shift: State-run Ceylon Petroleum Corporation (CPC) has expanded distribution to offset private cutbacks, raising its domestic market share to 77%–80% (up from 50%–55% prior to price controls). • Regulatory Constraints: Existing agreements allow private suppliers to set formula-based prices and maintain minimum import volumes, but limit the Govt. from directing supply allocations to specific filling stations. Further steps depend on upcoming talks at the Presidential Secretariat.