Major Agreement Grants Foreign Firms Access to 450 CPC Sheds

In a move that is set to shake up Sri Lanka’s fuel retail market, Cabinet approval has been granted for three foreign entities to enter the sector. China’s Sinopec, United Petroleum of Australia, and RM Parks of the USA, in collaboration with Shell Plc, have been granted licenses to operate in Sri Lanka’s fuel retail market for a period of 20 years.

The companies will be allocated 150 dealer-operated fuel stations, which are currently operated by the state-run Ceylon Petroleum Corporation (CPC). Additionally, each selected company will establish a further 50 fuel stations at new locations.

According to Minister of Power and Energy, Kanchana Wijesekera, the energy committee and relevant procurement committees have given their approval and recommendation for the three companies to operate in Sri Lanka. The companies will be allowed to import, store, distribute, and sell petroleum products in the country.

This decision marks a significant shift in Sri Lanka’s fuel retail market, which has been dominated by the CPC. The entry of these foreign entities is expected to increase competition and provide consumers with more options.