CPC puts up for sale 500 more gas stations, complains Petroleum General Employees Union

By Chaminda Silva

The Ceylon Petroleum Corporation (CPC) was planning to sell another 500 gas stations including 300 run by local businessmen,to Lanka Indian Oil Corporation, President of the Petroleum General Employees Union Dr. Ashoka Ranwala told The Island.

There were 1,200 filling stations that receive fuel from CPC, he said. Only 200 petrol sheds were under the direct control of the CPC.

“The other 1,000 are operated by Sri Lankan businessmen who have used their own capital to establish and develop gas stations,” he said.

“Before 2002, CPC owned 400 gas stations and out of them 200 were sold to LIOC,” Ranwala said.

“Now, the government wants to sell the other 200 gas stations and 300 run by local businessmen to LIOC. In the past, most local businessmen running gas stations would have opposed such a move. But now most of them want to get out of the business because they are not getting fuel. You have to deal with the police, gangsters and angry people. So, most gas station owners are trying to sell their assets,” he said. Ranwala said that the government was trying to undermine the CPC.

“In the early 2000s, the Ranil Wickremesinghe government allowed private operators and the LIOC to take over the lucrative bunkering operation,” he said.

“They also didn’t develop the Sapugaskanda refinery. Running an oil refinery is a profitable business. I don’t know any other refinery that is not profitable. If the government brings in crude oil, the refinery can produce even jet fuel. We sell jet fuel to airlines and get paid in dollars. We can earn about 1.5 million US dollars a day if the refinery is operational,” he said.