Power and Energy Ministry receives 27 proposals from companies including Sinopec and British Shell
Sri Lanka is to hand over between 500 and 700 fuel stations to foreign oil companies for retail operations, as the country’s fuel import bill has risen to more than USD 2 billion, according to estimates.
According to the Sunday Times, the Power and Energy Ministry is considering 27 proposals from various companies, including the Chinese Sinopec Group and the British Shell company.
“Before making a final decision, the ministry intends to shortlist the proposals.” The sheds will be operated by four companies, according to a senior official.
According to the proposed model, the company would import and supply fuel, while the Ceylon Petroleum Corporation would provide transportation. In exchange, the government will be charged a service fee.
The fuel stations will be chosen from among the 1,200 currently under CPC control.
The moves come as the Power and Energy Ministry has requested USD 200 million from the Treasury and the Central Bank to import next month’s diesel, gasoline, and crude oil requirements.
The CPC has already received confirmation of three diesel shipments of 37,300 MT each and two shipments of Octane 92 petrol of 35,300 MT each for the coming month.
According to CPC estimates, fuel imports will cost more than USD 2 billion over the next four months. USD 246 million is required for confirmed shipments in September alone, while USD 333 million is required for expected shipments.
From October to December, the financial requirements are USD 537 million, USD 468 million, and USD 471 million.