By: Staff Writer
Colombo (LNW): The state owned Ceylon Petroleum Corporation (CPC) has given up its monopoly over the oil industry after 62 years following the opening up the petroleum imports storage distribution and sell to Sinopec, a leading Chinese energy and chemical company with effect from yesterday.
.Correcting a historic a mistake, the government was taking steps to allow multinational oil companies to recommence operations in Sri Lanka. The petroleum sector was nationalised in the early 1960s and the CPC was given a monopoly.
An agreement was also signed recently at the Presidential Secretariat, between the Government of Sri Lanka and RM Parks Inc., a prominent international company operating in collaboration with Shell, marking a significant step towards securing a long-term contract for the importation, storage, distribution, and sale of petroleum products in the country.
Power and Energy Minister Kanchana Wijesekera announced the first fuel cargo from Sinopec, a leading Chinese energy and chemical company, has commenced discharging, with the second cargo expected to arrive today.
Taking to Twitter, he said the entry of new retail suppliers to the domestic market holds the promise of easing the country’s foreign exchange requirements for petroleum products, a development that is set to fuel economic growth.
Minister Wijesekera said the new retail suppliers are poised to alleviate forex pressures by adopting a 12-month financing facility from their principal investors.
This move marks a strategic step towards bolstering forex efficiency and optimising the import process for petroleum products.
“Sinopec will commence retail petroleum operations with 150 fuel stations islandwide once the agreements with the fuel station dealers are signed and finalised,” he added.
On 14 July, Sinopec Energy Lanka Ltd., signed an agreement with the Board of Investment (BOI) for a $ 100 million investment in the import, storage, and sale of petroleum in Sri Lanka.
As part of this endeavour, Sinopec will have a total of 200 fuel stations countrywide, by assuming the control of 150 privately-owned fuel outlets currently operated by the Ceylon Petroleum Corporation (CPC), and by additional 50 new filling stations.
Sinopec will offer a wide range of petroleum products through its fuel stations, including 92 and 95-octane petrol, 500 PPM diesel, diesel 10 COPPM, petroleum jet fuel, and other diesel and petroleum products.
