Multinational Oil and Gas Companies Granted Licenses to Enter Sri Lanka’s Fuel Retail Market
Sri Lanka is set to welcome three multinational oil and gas companies into its fuel retail market, as the Cabinet of Ministers has approved licenses for China’s Sinopec, Australia’s United Petroleum, and the US-based RM Parks, in collaboration with Shell plc. The Energy Committee and other procurement committees have given their approval and recommendation for the companies to operate in the country.
The three companies will each be allocated 150 dealer-operated fuel stations that are currently operated by Ceylon Petroleum Corporation (CPC), and a further 50 fuel stations will be established by each selected company in new locations. The minister in charge of Power and Energy, Kanchana Wijesekera, stated that the companies would be granted a 20-year license to import, store, distribute, and sell petroleum products in Sri Lanka. The move comes after the Cabinet green-lighted a proposal in June 2022 to open up Sri Lanka’s fuel import and retail sales market to companies from oil-producing nations, with the Petroleum Products (Special Provisions) Bill being approved by the Ministerial Consultative Committee on Power and Energy in October the same year.