COLOMBO – Sinopec Energy Lanka (Pvt) Ltd, a unit of China’s Sinopec petroleum group said it has started selling diesel and petrol in Sri Lanka, 3.00 rupees below the price set by state-run Ceylon Petroleum Corporation.
The company has a 20-year franchise from Sri Lanka and will take over 150 fuel stations, now operated by Ceylon Petroleum Corporation. Sinopec said that in July it had invested in 50 new filling stations.
“Sinopec’s entry into the Sri Lankan market holds significance beyond its energy offerings, aiming to contribute positively to the country’s economic stability and growth,” the company said in a statement.
“This endeavour also aligns with the broader objectives of the Sri Lanka Energy Reform, contributing to the country’s energy security, accessibility, and sustainability.”
The company is expected to import fuel with its own funds for a year, Energy Minister Kanchana Wijesekera said.
One franchise filling station started selling fuel in Mattegoda, in the Western province of Sri Lanka on Thursday (31).
CPC has been recording regular operation losses due to procurement inefficiencies and over staffing, while Lanka IOC, a competitor to CPC which runs a lean operation has reported large profits over the past several years.
-economynext.com
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