It’s alright for new foreign fuel retailers to undercut CPC in pricing productsBy Rathindra Kuruwita

The Sri Lankan government has decided to allow three foreign companies to sell fuel at prices lower than those of the Ceylon Petroleum Corporation (CPC) if they so desire.

Earlier, Minister of Power and Energy Kanchana Wijesekera told the media that three foreign companies would commence operations within the next two months.

The Minister told the media that agreements would be signed with the foreign companies within the next two to three weeks.

He said that the three companies were keen to commence operations in Sri Lanka and had requested the government to fast-track the registration process.

The Cabinet last week agreed to award licences to more foreign companies that intended to enter the local fuel market, Minister Wijesekera said.

China’s Sinopec, United Petroleum of Australia and RM Parks of the United States in a collaboration with Shell Plc will enter the fuel retail market in Sri Lanka.

The foreign companies will each be allocated 150 dealer-operated fuel stations that are currently operated by the state-owned Ceylon Petroleum Corporation. They will also be allowed to import, store, distribute and sell petroleum products in Sri Lanka for 20 years.

The companies will also be allowed to establish 50 new fuel filling stations each in new locations.

Currently, the only two players in Sri Lanka’s market are Ceylon Petroleum Corporation and Lanka IOC.