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Fixed range for fuel price as Sinopec enters

6 June 2023 07:49 am – 0      – 622

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The government will introduce a floor and ceiling price for fuel with the launch of business operations by Sinopec, a leading international petroleum company, in the country shortly, a top source said.

Sinopec has already signed the agreement to distribute fuel in Sri Lanka. Sinopec will be allocated 150-dealer operated fuel stations in the country. Besides, two other foreign fuel companies will be allowed to operate in the country later. Currently, the state-owned Ceylon Petroleum Corporation and Lanka Indian Oil Company are the only fuel distributors in the country.

A government source told Daily Mirror on condition of anonymity that a floor and ceiling rate would be introduced according to a pricing formula in the future once these foreign companies start operations.

“The companies are required to be competitive within the stipulated limit. We cannot expect a drastic price reduction soon, though,” the source said.

The source also said the government will also move away from the QR code system introduced for rationing fuel trade soon.

“We will gradually do away with the QR code system,” the source said.

Meanwhile, RM Parks-Shell will start fuel trade in Sri Lanka after signing the agreement on June 8. In the world market fuel prices are likely to rise because Saudi Arabia as a key oil supplier, has decided to curtail supplies. (Kelum Bandara)

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