Govt. throws open retail fuel market to new players from oil producing countries

By Ifham Nizam and Rathindra Kuruwita

The Cabinet of Ministers has approved a proposal to allow companies from oil producing nations to import oil and start retail operations in SriLanka.

The Department of Government Information announced the decision yesterday (28) issuing a statement.

The proposal was made by Minister of Power and Energy Kanchana Wijesekara.

The Cabinet also approved a proposal to allow companies registered for bunkering operations, under the Sri Lanka Ports Authority (SLPA) to import jet fuel.

Sri Lanka needs 1.2 million litres of jet fuel a day for planes. However, the CPC is not able to procure adequate quantities of aviation fuel.

The Minister of Power and Energy had thus made a proposal to allow above-mentioned companies to import jet fuel to ensure that air travel can continue without any hindrance.

Power and Energy Minister Wijesekera, who is in Qatar on a trade mission, yesterday tweeted that through companies would be selected on the ability to import fuel and operate without forex requirements from the Central Bank of Sri Lanka and Banks here for the first few months of operations.

He stressed that the Ceylon Petroleum Corporation would be the service provider for logistics, stocking and distribution with a service fee charged from the companies.

Minister Wijesekera said selected outlets of the existing 1,190 CEYPETCO and new outlets would be made available for Lanka Indian Oil Company and new companies to be selected, he added, noting that the Sapugaskanda oil refinery would continue to operate under the CPC.

At a special media briefing, Media Minister Bandula Gunawardena said that fuel issuance would be restricted to vehicles attached to essential services until 10 July.

The CPC would supply diesel and petrol only to essential services such as ports, health sector, distribution of essential food items, and transportation of agricultural products hereafter, the Cabinet spokesperson noted.

The Cabinet of Ministers had also decided to continue essential services and suspend other operations until the 10 July, the Minister said.

He went on to assure that a mechanism to provide a continuous supply of LP gas and fuel would be in place after 10 July.

Inter-provincial transport services would be temporarily halted due to the availability of limited stocks of fuel, he added.

The Department of Government Information said that at present 90 percent of Sri Lanka’s fuel supply was handled by the Ceylon Petroleum Corporation (CPC), and the remaining 10% by Lanka IOC.