The first fuel shipment from China’s petroleum giant, Sinopec is due to arrive in Sri Lanka in August, State Minister of Power and Energy D.V. Chanaka, said yesterday (23).

Speaking at a press briefing, Chanaka stated that a Maximum Retail Price (MRP) for fuel at the pump will be stipulated by the Government to all fuel retailers under a common price formula from August. 

He also said that a decision regarding the QR code for fuel after discussing the matter with all relevant parties.

“Until now, the fuel price formula existed only for Ceylon Petroleum Corporation (CPC). Instead, steps will be taken to set a MRP using the price formula to affect all companies through this new system. Thus, the Ministry will decide the MRP in the future. The companies will then be able to provide fuel at a price of their choice subject to the MRP. This will create competition among fuel companies resulting in reduced fuel prices.” Chanaka opined. 

Sri Lanka signed an agreement with Sinopec in May, after last year’s policy decision to open the domestic fuel market to more international players, following difficulties in purchasing fuel due to the foreign exchange crisis of last year. Under the deal, the Chinese firm and two others, one based in the US, was given a 20-year licence to operate 150 fuel stations, and they will also be able to invest in 50 new fuel stations.