Power and Energy Ministry Secretary Mapa Pathirana yesterday said the three foreign companies permitted to enter Sri Lanka’s retail fuel market will begin operations as soon as the relevant agreements are finalised.
He said the agreements with the three companies will most probably be finalised within the next two months.
Pathirana also said that the companies will have to adhere to the government formula on determining the maximum retail price for petroleum products.
However, Pathirana said if a company is willing to sell fuel at a price below the maximum retail price, they were welcome to do so.
Pathirana said this may pave way for enhanced competition and the consumers may benefit.
The three companies slated to enter the market shortly are China’s Sinopec, United Petroleum of Australia and RM Parks of USA. They will operate in collaboration with Shell Plc.
They will be given licences to import, store and distribute fuel in Sri Lanka. The licences are valid for 20 years.
Under this scheme 150 CPC fuel stations will be given to the three foreign Companies.