CPC accused of threatening shed owners

Several petrol shed dealers have instituted legal proceedings against the Ceylon Petroleum Corporation (CPC), alleging that the latter, in order to charge additional fees not covered under currently existing agreements, is engaging in a campaign of blackmail and coercion to push dealers operating from CPC-owned sheds to execute new agreements that are materially disadvantageous to them.

According to legal documents obtained by The Sunday Morning Business, several petrol shed dealers operating from sheds owned by the CPC (identified as Corporation-Owned, Dealer-Operated or CODO dealers) had instituted legal proceedings bearing Nos. DSP 354, 355, 356, and 357/2025. 

They allege that the corporation has been unlawfully attempting to force the CODO dealers to pay a new fee titled the ‘monthly utility fee’ which is not recognised in terms of their existing dealership agreements with the CPC.

According to the legal documents, several petrol shed dealers claim that the CPC, comprehending its inability to claim this new fee in terms of the existing agreements with its CODO dealers, has now started forcing such dealers to execute new dealership agreements allowing the corporation to charge such a monthly utility fee.

The petrol shed dealers contend that, in light of their opposition to executing the proposed new dealership agreements, the CPC, acting through its regional managers, has resorted to a campaign of blackmail and coercion. 

This allegedly includes threats to withdraw existing credit facilities and deliberate delays in fuel deliveries, aimed at pressuring dealers into executing these agreements that are materially disadvantageous to them.

Accordingly, the cases bearing Nos. DSP 354, 355, 356, and 357/2025 had come up before the Colombo District Court on Thursday (13), where the court had issued notice of interim injunction against the CPC.

The petrol shed dealers in their plaint filed before the court had sought interim injunctions preventing the CPC from forcing them to execute new dealership agreements and from levying the monthly utility fee in question.

Speaking to The Sunday Morning Business, CPC Managing Director Dr. Mayura Neththikumarage stated that he was unaware of such legal proceedings instituted by CODO dealers against the CPC.

He further stated: “I have not heard of any cases like that. Anyway, the CODO dealers can’t file cases against us. CODO means the sheds are owned by the CPC.”

Commenting on the allegations of blackmail, he stated that the CPC did not communicate matters verbally, and that if the CPC had intended to convey any such message, it would have done so by way of an official circular. Therefore, in the absence of such a circular, he claimed it was evident that no such communication had ever been made by the corporation.

“We don’t have to threaten them. We have given them a job. We have given them these sheds for a period of time. If the time period has expired, they have to sign a new agreement,” he stated.

Source: The morning