Cabinet approval for 03 foreign firms to enter fuel retail market in Sri Lanka

Cabinet approval for 03 foreign firms to enter fuel retail market in Sri Lanka

March 27, 2023   05:39 pm

Minister of Power and Energy Kanchana Wijesekera says the Cabinet of Ministers has granted approval to award licenses to China’s Sinopec, Australia’s United Petroleum and RM Parks of the USA, in collaboration with multinational oil and gas company – Shell plc, to enter the fuel retail market in Sri Lanka.

In a twitter message, he said that the Energy Committee and other relevant procurement committees had given their approval and recommendation to award the three companies the licenses to operate. 

The minister stated that the three companies will each be allocated 150 dealer operated fuel stations, which are currently operated by Ceylon Petroleum Corporation (CPC). A further 50 fuel stations at new locations will be established by each selected company, he said.

They will be granted a license to operate for 20 years to import, store, distribute and sell petroleum products in Sri Lanka, the minister tweeted. 

In June 2022, the Cabinet of Ministers had green-lighted the proposal to open up Sri Lanka’s fuel import and retail sales market to companies from oil-producing nations.

In October the same year, the Petroleum Products (Special Provisions) Bill, paving way for new suppliers to enter as importers, distributors and retail operators for petroleum products, was approved by the Ministerial Consultative Committee on Power and Energy.

source adaderana

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