Foreign oil companies to set up shop in 2 months
Posted on April 4th, 2023

Courtesy The Morning

  • Agreements to be signed in 2 weeks

Minister of Power and Energy Kanchana Wijesekera stated that the three Cabinet-approved foreign oil companies are expected to commence their fuel distribution operations in Sri Lanka within the next two months.

Sri Lanka is planning to ink the respective agreements with the three companies in the coming two weeks, said Wijesekera, who joined the political talk show 360 on TV Derana on Monday (3).

Last week, the Cabinet greenlit the proposal to grant retail licences to China based Sinopec, Australia based United Petroleum and the United States based R.M. Parks Inc., in collaboration with the United Kingdom based Shell PLC. Cabinet approval came after the relevant procurement committees gave their go-ahead and recommendations to award the three companies retail licences to operate in Sri Lanka.

According to Wijesekera, each company will handle 150 Ceylon Petroleum Corporation (CPC) dealer operated filling stations in the local market. At present, a total of 1,142 filling stations are under the purview of the CPC, however, the Corporation fully owns only 234 of them, Wijesekera explained, adding that 450 out of the remaining 908 filling stations owned by private distributors would be allocated to the three foreign oil companies. In addition, these firms will be permitted to establish up to 50 filling stations of their own in the country, Wijesekera said further.

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