The Government is examining legal options that could allow private fuel distributors operating in Sri Lanka to determine their own prices within a regulated upper and lower price range, according to Energy Minister Anura Karunathilaka.
The proposal is being considered amid concerns raised by private fuel companies over losses under the existing pricing structure as international fuel and shipping costs remain elevated.
The private distributors include Lanka IOC, Sinopec and RM Parks.
The Minister said some private companies had restricted diesel supplies because of losses under prevailing market conditions.
Regulated price range under consideration
Under the option being examined, private distributors could receive greater flexibility to determine their individual retail prices, but those prices would remain within a Government-regulated minimum and maximum range.
The Government is examining the legal mechanism required for such a system.
No final regulated price band, implementation date or company-specific retail price has been announced.
The proposal therefore does not mean that private fuel companies have already been authorised to independently change pump prices.
Part of wider fuel-price discussions
The Government has been considering several responses to higher international fuel costs and concerns raised by private distributors.
These have included possible Government intervention through a subsidy as well as changes to the pricing mechanism.
The latest development is that a possible company-specific pricing system within regulated limits is now being examined from a legal perspective.
Any final impact on consumers will depend on the pricing mechanism ultimately adopted and the fuel prices announced under it.