Lanka IOC and Sinopec have taken steps to increase fuel prices due to the existing structure of Sri Lanka’s fuel market, Cabinet Spokesman Minister Dr. Nalinda Jayatissa said.

Minister Jayatissa made the remarks today (27) while responding to a question raised by a journalist at the weekly Cabinet media briefing.

Minister Jayatissa explained that previous governments had allocated additional segments of the domestic fuel market to private companies in an effort to safeguard the country’s foreign exchange reserves.

He noted that, under the current market structure, if the Government were to determine fuel prices, it would have to bear the additional costs through the Treasury.

The Minister further stated that while fuel prices in the Middle East were rising sharply, the private fuel companies had restricted fuel distribution. In contrast, the Ceylon Petroleum Corporation (CPC) was continuing to distribute fuel to the fullest extent possible under the prevailing circumstances.

He said the Government was also identifying locations where the CPC does not currently operate fuel stations, with plans to establish new filling stations in those areas.

According to the Minister, expanding the CPC’s fuel station network would help the Government provide some relief to consumers while ensuring an uninterrupted fuel supply and preventing disruptions in the market.

He added that the CPC was continuing fuel distribution at maximum capacity while maintaining the existing subsidy mechanism.

The Minister emphasized that the Government was working within the limitations of the current fuel market structure while taking steps to expand the CPC’s presence and improve fuel accessibility across the country.