Govt. to allow international oil companies to operate in the country

The crisis-ridden Government is to allow international oil companies to operate fuel import and distribution in Sri Lanka ending the oligopoly of Ceylon Petroleum Corporation (CPC) and Lanka Indian Oil Company, a senior Energy Ministry official said.

This decision has been taken after a recent attempt of opening the fuel importation for six private companies did not materialise as the first such shipment ordered by a selected firm with a connection to foreign fuel supplier has failed to fulfil its obligation, he revealed.  

The Power and Energy Minister Kanchana Wijesekera will present a Cabinet paper today (Monday) to grant permission to international oil players like Shell, Caltex, Esso and other international  companies to supply and distribute fuel to local Ceypetco fuel filling stations on a credit basis for six months or one year obtaining necessary dollar funds from their parent companies, he added.

These companies will be given Ceypeto fuel storage and other logistic facilities for their local operations which will not be a burden to the Sri Lanka government, he disclosed,

The selected international companies will be given at-least 200 each of Ceypetco fuel filling sheds numbering 1190 countrywide.  

The selected company should supply fuel for at least for one year on credit––a company that could use its own funds to import fuel, he said adding that the purpose will be lost if they too start tapping into the dollars of local banks.

He disclosed that Lanka IOC has made a request from the government to hand over at-least 50 Ceypetco fuel filling stations for them to expand their operations further to ease the fuel crisis. (Bandula)