(LANKAPUVATH | COLOMBO) – The Sri Lankan government has received the approval of the cabinet to allow entry of three global fuel giants to the country’s fuel retail market.
The cabinet of ministers has granted approval to award licenses to China’s Sinopec, United Petroleum of Australia and RM Parks of USA in a collaboration with British multinational Shell Plc to enter the retail fuel market in Sri Lanka.
The Minister of Power and Energy, Kanchana Wijesekera, on Monday via Twitter announced that the Energy Committee and relevant other procurement committees had given their approval and recommendation to award the three companies the licenses to operate.
The companies will be granted a license to operate for 20 years to import, store, distribute and sell petroleum products in Sri Lanka.
The three companies each will be allocated 150 dealer operated fuel stations which are currently operated by the state-owned Ceylon Petroleum Corporation (CPC).
In addition, each selected company will be allowed to establish a further 50 fuel stations at new locations.
Currently, the only two fuel retailers in Sri Lanka’s market are state-owned Ceylon Petroleum Corporation and Lanka IOC, the Sri Lankan subsidiary of Indian Oil Company (IOC).
Preparations to give about half of the 1,250 CPC filling stations to the foreign companies commenced following the fuel crisis last year and the Ministry of Power and Energy in July last year called for expressions of interest from established companies in petroleum producing countries using their funds for importation, distribution and selling of petroleum products in Sri Lanka on long-term agreements.