ECONOMYNEXT- Sri Lanka is seriously looking at allowing more fuel market players from the current two despite protest by trade unions of loss-making state-owned fuel retainer Ceylon Petroleum Corporation (CPC), three months after fuel shortage ousted previous president and government.
Power and Energy Kanchana Wijesekera on Wednesday (05) said he will submit the proposal to amend the Petroleum Special Provisions Act to allow more competitors to enter the fuel market in the country, to the parliament for approval.
“Amendments to the Petroleum Special Provisions Act paving way for new suppliers to enter as importers, distributors & retail operators for Petroleum products was approved by Parliament Consultative Committee. Hope to have it on the agenda for 3rd week of Oct for debate in Parliament.” Minister Wijesekera said in his twitter platform.
Amendments to the Petrolieum Special provisions act paving way for new suppliers to enter as importers, distributors & retail operators for Petrolieum products was approved by Parliament Consultative Com. Hope to have it on the agenda for 3rd week of Oct for debate in Parliament. pic.twitter.com/oBKdkTgCfS
— Kanchana Wijesekera (@kanchana_wij) October 5, 2022
The government has already proposed to sell 800 of the CPC’s 1,200 filling stations to foreign companies initially and then eventually it wants to liquidate all the CPC assets, including storage, refining and other facilities to make it a profitable venture, government officials have said.
The move, seen as privatization of the CPC, is part of a broader reform of President Ranil Wickremesinghe government which is part of repeated requests from the the International Monetary Fund (IMF) to prevent losses.
The government’s firm decision also comes after the CPC’s huge losses and lack of dollar liquidity resulted in a fuel shortage in the first two weeks of both in May and July as the country failed to import the required fuel. That brought the whole country to a standstill amid extended power cuts.
The shortage led to youth-led protests mainly in capital Colombo and resulted in ousting then prime minister Mahinda Rajapaksa in July 9 and fleeing of then president Gotabaya Rajapaksa from the presidential palace first and then from the country before resigning from Singapore.
The trade unions affiliated to the CPC have opposed the move to allow more competitors in the sector.
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The Cabinet has already given approval to amend the Petroleum Products Act making provisions to issue licenses to “properly identified parties” to import fuel ending the import monopoly held by the ministry of petroleum. The decision was to allow the identified sectors like power generating firms to import the fuel required for them directly without depending on the CPC. (Colombo Oct05/2022)