The United States-based RM Parks has deposited a required performance bond and the first shipment may arrive in Sri Lanka next month to commence their operations countrywide, energy minister Kanchana Wijesekera said.
“As of now, RM Park has already deposited a $1 million performance bond. They have informed us that they will deposit the $2 million license fee in the soon he added.
Sri Lanka in July this year awarded retail fuel licenses to three foreign firms, namely, China’s Sinopec, United Petroleum Australia and US-based RM Parks to reduce the state-owned Ceylon Petroleum Corporation’s (CPC) pressure on finding foreign currency for the country’s whole fuel import.
Sinopec has already started operations.It is already importing fuel for US$40 million monthly and if all three start operations in its full potential, the government can save up to $1.5 billion from fuel imports, he said.
The government has imposed conditions for all the three fuel retailers to use foreign currency from their mother company for imports while banning the repatriations of foreign currency from Sri Lanka.
United Petroleum Australia, the third new fuel retailer, however is facing a delay after a request in contrary to the earlier conditions.
The US based company will initially take over 150 fuel stations and will operate them.
RM Parks has supplied a variety of fuel brands to stations in California for almost 50 years. In addition to this Australian United Petroleum company too would start operations in Sri Lanka.
Sri Lankan authorities have opened the retail fuel market to more foreign companies in an effort to solve the energy crisis as the country’s depleted foreign reserves hinder imports of oil.
The foreign companies are required to use their own funds to purchase fuel, without depending on Sri Lankan banks for foreign exchange.
The US based company will initially take over 150 fuel stations and will operate them.
Prior to the economic crisis, the Sri Lankan Petroleum sector held the monopoly in the sector and two decades ago the government also allowed Indian Oil Company (LIOC) to operate in Sri Lanka also allowing them to operate oil tanks in Trincomalee.
With the economic crisis which was further fueled by long fuel ques due to the government not having finances to fund for fuel imports the government decided to allow more foreign companies to enter the local market.
With this Chinese petroleum giant Sinopec also entered the Sri Lanka market and already commenced operations last month. Sinopec signed the contract on May 22, 2023.
He said that both the RM Parks of the USA and Sinopec also have the authorization to build new petrol sheds on their own and operate in Sri Lanka.
RM Parks has supplied a variety of fuel brands to stations in California for almost 50 years.
