COLOMBO, Oct. 6 -- Private fuel distributors in Sri Lanka have reduced supplies to the domestic market because they are incurring losses under the government's regulated fuel pricing structure, Energy Minister Anura Karunatilaka told Parliament on Tuesday (6), as fuel queues re-emerged in Colombo.

The minister said Lanka IOC, Sinopec and RM Parks had informed the government that they could not continue selling fuel at prevailing domestic prices, which were below their costs.

"However, we do not have the ability to increase prices proportionately. In light of this, they have restricted the fuel released to the market," Karunatilaka said, explaining that Lanka IOC had reduced its market releases, compared with February, by 45% for auto di...