⛽ Petroleum Dealers Appeal to President Over Commission Cuts

The Petroleum Dealers’ Association has sought the intervention of President Anura Kumara Dissanayake following a shift in the commission structure that threatens the viability of the energy distribution sector. • Core Issue: A new tiered, fixed-range commission system (Circular 1109) replaced the long-standing percentage-based model on 1 March 2025. Dealers report that earnings per litre are now capped, failing to cover operational costs. • Financial Impact: Operating Costs: Income is reportedly insufficient for staff salaries, VAT remittances, and loan repayments. Working Capital: As fuel must be purchased on a cash basis, dealers must invest higher capital when prices rise, while their per-litre income remains static. Risk of Closure: The Association warns that numerous cooperative-run stations and individual businesses face potential closure, impacting national employment and supply networks. • Sector Disparity: While Ceylon Petroleum Corporation (CPC) dealers operate under fixed margins, private sector competitors continue to receive a sustainable percentage-based commission (approx. 3%). • Proposed Solution: The Association has requested the appointment of an expert committee, including industry stakeholders, to develop a sustainable framework for the fuel retail market. _Source: Based on provisional industry reports as of 20 April 2026._