The Cabinet of Ministers has endorsed a move by the State-run Ceylon Petroleum Corporation (CPC) to re-enter the bunkering business to supply bunker fuel to ships at competitive prices.
Energy Minister Udaya Gammanpila on Monday presented to the Cabinet of Ministers the programme designed to restart the bunkering business by the CPC, which is aimed at supplying bunker fuel to increase the number of naval vessels sailing across the territorial waters of the country.
Before the liberalisation of bunker fuel business in 2004, the monopoly on fuel oil supply to naval vessels was held by Lanka Maritime Services Limited, an affiliate of CPC.
The Government Information Department noted that CPC had withdrawn from bunker fuel business, with only small quantities of oil imported by a few suppliers stored at the Jaya Container Terminal being re-exported to ships sailing across the country’s
However, it emphasised that CPC possesses the capacity of importing fuel oil in bulk at favourable prices and supplying the same to licensed suppliers at competitive prices, which could potentially attract number of naval vessels sailing across territorial waters of the country. According to Gammanpila, CPC is expected to re-enter the bunkering business by purchasing fuel for smaller players initially.