ECONOMYNEXT – State-run Ceylon Petroleum Corporation (CPC) may sell fuel below the formula price on par with Sinopec and other suppliers once discussion with the International Monetary Fund (IMF) and Finance Ministry ends in success, Sri Lanka’s State Minister for Power and Energy said.
Chinese Sinopec is selling three fuel products including Octane 92 at a lower price than CPC and Lanka IOC from the day one it started operations in Sri Lanka.
The island nation will see five fuel suppliers once expected new market players RM Parks and United Petroleum Australia start operations.
D V Chanaka, a State Minister for Power and Energy said the CPC is selling the products in line with a fuel pricing formula.
“Once we discuss this with the Finance Ministry and the IMF, from next month CPC also will be able to reduce the fuel prices along with the Sinopec,” Chanaka told reporters on Thursday (19).
“Sometimes we may be able to reduce the prices more than that. So we can increase the competition further.”
The state minister said the CPC is going ahead with the IMF on the price formula.
“We are implementing this formula with the IMF. The condition CPC was given is to go with the formula. We are discussing with the IMF asking to give us the freedom to compete with others within this formula,” he said.
“This means while ensuring no loss, granting the CPC to compete with other suppliers.
“We are going to create a background to compete with others. You will be able to see this within a month or two.”
The CPC has raised the prices of most fuel products in the last three months and the country is facing uncertainty over the prices given the price increase globally after the Gaza-led Middle Eastern conflict.
Sri Lanka saw the worst fuel crisis last year when the government bankrupted and ran out of foreign currency to import fuel. (Colombo/Oct 22/2023)