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Fixed range for fuel price as Sinopec enters

6 June 2023 07:49 am - 27     - {{hitsCtrl.values.hits}}

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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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  Comments - 27

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  • Jude Tuesday, 06 June 2023 08:24 AM

    I reiterate, the new entrants gonna engage in Collusion, yeah.

    Jayasenao Tuesday, 06 June 2023 08:29 AM

    Well hopefully thats a super idea, plus its a new development to Sri Lanka, only problem is the minister who"s in charge, we cannot trust him at all. Better if RW puts a UNP buddy.

    J.M. Peter Tuesday, 06 June 2023 08:57 AM

    No matter who run our Fuel stations, but there should not be a queue again and the fuel prices should come down further complying with the global market.

    Dr. Henry Weeraratne Tuesday, 06 June 2023 09:00 AM

    Minister Kanchana is not suitable to be the Minister for Power

    T.M.D. Fernando (attorney-at-law) Tuesday, 06 June 2023 09:02 AM

    Good move, we will appreciate your services if you guys run the show without any political interference.

    joshua Tuesday, 06 June 2023 10:01 AM

    Nver announce a fuel price revision before hand. We saw some of the sheds not stocking up due to the impending price reduction. Please take action against them as theirs is an essential service. The prices were increased they made a giant kill.

    R.M. Somatillake Hambantota Tuesday, 06 June 2023 11:09 AM

    Very good move, really appreciated. Start as early as possible and combat Ceylon Petroleum Corporation filled with Mahinda Rajapakshe's henchmen from Hambantota whom even Not got through GCE O/Levels. All are paid over one Lakh rupees.

    Leslie Ramanayake Tuesday, 06 June 2023 11:10 AM

    OK. What is the commission minister Kanchana asked from you to start your project.

    FUEL Tuesday, 06 June 2023 11:25 AM

    WHY HAVE A FLOOR PRICE?; If they need to sell at ONE RUPEE Why not allow?

    We are peanuts Wednesday, 07 June 2023 07:48 AM

    Floor price is to ensure that there is no cut-throat competition. We saw how individual Shed owners created a scarcity when there was a rumor of price reduction. Now that Sinopec has 150 sheds, better take precaution. Otherwise they will own more than half of petrol sheds. Even the USA cannot face competition from China. We are peanuts.

    Lahiru Tuesday, 06 June 2023 11:28 AM

    Fuel starvation was western conspiracy to bring their man ranil into power artificially restricting dollars into the country. White man controls the dollar inflow to any country

    dilip Tuesday, 06 June 2023 01:15 PM

    all profit drains out of the country. why can't we run even this type of simple business? disaster for SL future

    SCRanjithA Tuesday, 06 June 2023 01:28 PM

    Anti-Rani phobia! Sick mind! Not understood the reality.

    Samuel Tuesday, 06 June 2023 02:03 PM

    If not for Minister Kanchana, backed by President Ranil, these great happenings in the fuel sector would never have seen the light of day. The way Kanchana brought in the QR code when the country was reeling was exemplary. He believes in the saying: "Plan your work, work your plan".

    Mark Anandappa Tuesday, 06 June 2023 02:21 PM

    If SINOPEC comes out with the new prices the govt will be exposed with its profit margins.

    nishanth_24n@yahoo.com Tuesday, 06 June 2023 05:07 PM

    BY THAT TIME CURRENCY STARTS APPRECIATING , HERE COMES THE FIXED FUEL PRICE

    Sam Silva Tuesday, 06 June 2023 05:42 PM

    Will see if this going to happen in real but not just lip service. Our car possessed people will pay anything for fuel.

    Two half banana Tuesday, 06 June 2023 07:51 PM

    China imports its crude which is priced at world market competitive rates. The price of crude is impacted by global carbon emissions taxes, embargoes, supply and demand factors. So in short China or any other country cannot give petroleum away cheap. Sinopecs entrance will increase competition in the local market but that will not affect consumer petroleum price by much. So, tge real question is. ... is China trying to further SLs indebtedness to China or is it really interested in a tiny petroleum market like SL. What is Sinopecs real rationale for entry into SL?.

    Let them sell at any price, they will go broke if uncompetitive Tuesday, 06 June 2023 08:05 PM

    Government having price controls is limiting free market. Non-competitive fuel seller should go broke, no need for floor price, if they can sell cheaper than Ceylon Petroleum Corporation. If they want to have higher price people will keep away from those sheds, and they will go broke. Like everything in Sri Lanka so know it all, or in reality are just meddlers are making things worse. They meddle to bring in laws to restrict free speech and these actions seem in the long run to cause more inconveniences for the public too.

    jan Tuesday, 06 June 2023 09:05 PM

    All Regulations created by them ,Same Regulations Sabotaging by them too,All corrupted due to power

    Mandayan Tuesday, 06 June 2023 10:25 PM

    A Chinese international company!

    Mandayan Tuesday, 06 June 2023 10:25 PM

    A Chinese international company!

    Mandayan Tuesday, 06 June 2023 10:25 PM

    A Chinese international company!

    Mandayan Tuesday, 06 June 2023 10:25 PM

    A Chinese international company!

    Mandayan Tuesday, 06 June 2023 10:25 PM

    A Chinese international company.

    Ranil Tuesday, 06 June 2023 11:07 PM

    Reviewing through the comments, I very sadly saw only one or two commenters who understand basics micro economics. Until you have stringent laws to penalize corporations for collusion, no price floor or ceiling can guarantee competitive pricing that benefit the consumer.

    Damith Jayatilleke Wednesday, 07 June 2023 03:35 AM

    Ministers friends and relatives have interest in so called chinese international company


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