New regulatory body to be established to prevent fuel shortages: state minister

by Sanath Nanayakkare

A new regulatory body under the purview of the power and energy ministry would be established in the near future whose duties will include the ensuring of uninterrupted fuel supplies at all the filling stations in the country, leaving no room for any more fuel queues, D.V. Chanaka, State Minister of Power and Energy said yesterday.

He made this remark to the media at a ceremony where Sinopec Lanka Energy (Pvt) Ltd inaugurated its first renovated filling station at a grand re-opening ceremony at Trans Lanka Filling Station in Nawagamuwa.

The event was witnessed as a major milestone on the company’s first anniversary since entering into Sri Lanka.

Speaking at the event, the State Minister said,” We have already given Sinopec the mandate to supply oil to 150 fuel stations owned by Sri Lankan businesspeople. This filling station at Nawagamuwa has been fully renovated to the best global standards, and I identify it as one of the top 3 filling stations in Sri Lanka. In the agreement that we have entered into with Sinopec, we have agreed that all these 150 fuel stations will be upgraded to equal the best standards of fuel stations in China. In addition to that, another 50 fuel stations are scheduled to be opened. However, as the infrastructure and operational standards of these stations are very high, we have agreed upon a timeframe of three years for the completion of these fuel stations. It is going to be such a secure system,” he said.

“We know there are concerns among consumers about the quality of fuel they get at filling stations. But state-of-the art filling stations like this one in Nawagamuwa would be a trend setter in the best global standards applicable to filling stations. In the future, as this trend expands, it is all going to be automated and it will be possible for us to monitor from the head office in Colombo the quality of fuel supplied to the consumers as well as whether the consumers get the right quantity of fuel for the money they paid.”

“Meanwhile, the government is going to set up a new regulatory body according to which each and every fuel station must maintain 50% stock at any given time. We will be able to monitor that from the head office without having to visit them. We are going to do this to ensure that no fuel shortage would occur again and to eliminate the formation of queues for oil.”

“Other two foreign players who have agreed to enter the market will also set up their stations on a par with Sinopec’s standards and the Ceylon Petroleum Corporation also will up its game in the energy sector to effectively face the emerging competition,” he said.

The minister thanked Sinopec for supplying the cheapest oil to Sri Lanka with a one-month credit line during the tough economic times Sri Lanka experienced during which time 25 regular oil suppliers ditched Sri Lanka.

Ms Wang Haini, the General Manager of Sinopec Energy Lanka said,” Looking ahead, Sinopec plans to renovate the remaining 149 filling stations over the next 3 years and explore opportunities for 50 brand new stations. A vocational training and qualification grade system to fuel station staff will be built to help develop a more skilled workforce for the energy sector. A comprehensive customer service center, which will be equipped with support in multiple languages, is also to be introduced to effectively address inquiries from customers and dealers alike.”

‘Sinopec’s efforts in Sri Lanka are part of its broader commitment to enhancing the energy landscape through strategic investments in infrastructure and human capital development. Sinopec will be devoted to shaping high standards in Sri Lanka’s Petroleum Industry under the guidance of Ministry of Power and Energy and empowering Sri Lanka,” she said.

Himaransi Gamage, dealer/ director at Translanka Enterprise Pvt Ltd told The Island that the renovation of their filling station was done at a cost of more than Rs.100 million and the total cost was borne by Sinopec.