Long queues have formed at fuel stations across the country after the Petroleum Dealers Association refused to accept a new commission formula proposed by the government.
However, Labour Minister and Deputy Minister of Economic Development, Prof. Anil Jayantha, assured that there is no fuel shortage in the country. Addressing Parliament today (1), he stated that certain organized groups are attempting to create an artificial crisis.
Fuel station owners have raised concerns over operational costs and demand a revision of the commission structure.
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CPC chairman explains fuel issue, denies crisis!
The new formula to be introduced for fuel distributors will provide them with a higher benefit than the previous 3% discount, according to the Chairman of the Ceylon Petroleum Corporation (CPC), D.J. Rajakaruna.
Accordingly, the CPC recently decided to abolish the 3% discount provided to fuel distributors and replace it with a new formula for benefits.
In protest of this decision, the Fuel Distributors’ Association stated yesterday (28) that it had decided to refrain from ordering fuel starting today (01).
However, the CPC further stated that this decision will not cause a fuel crisis in the country.
Chairman D.J. Rajakaruna explained that the benefit provided to fuel distributors will increase through the new formula.
“The first 15 loads are paid 6.96. The next 15 loads are paid 6.62. Now they say that there are more people who do about 25 loads. They are still earning about Rs. 1 million. They say that they cannot even live on that after paying their salaries.”
“Under what we are introducing, someone who does 25 loads gets 6.69. Then they get Rs. 1,103,850,” he said.
WHAT HAPPENED TO FUEL DEALERS!
No reduction in profits for dealers and distributors – Minister.
The new revenue scheme has not reduced the profits for fuel distributors and shed owners, and the spreading of rumours of a fuel shortage is a conspiracy to create a false impression of a return to fuel queues, Minister of Labour and Deputy Minister of Economic Development Prof. Anil Jayantha said in parliament today (1st).
The new scheme provides for a commission of 3.5% to the distributors and shed owners of the price per litre, the Minister said in response to a query from an Opposition MP. Those shed owners and distributors in more rural areas receive an even higher commission of 4.5%.
The number of orders made for fuel deliveries for the next few days is even higher than the usual daily number of 1,200 orders, the Minister said. There is therefore no shortage of fuel in the market.
However, a shortage is being created by a group that is spreading a false rumour over social media, causing consumers to rush to fuel sheds, the Minister said.
