Fuel Distributors Association threatens legal action against CPC



By Shiran Ranasinghe

Filling station operators on Thursday, warned that they would take legal action against Ceylon Petroleum Corporation (CPC) if the state-owned entity stopped providing fuel to gas stations that refuse to enter into agreements with China’s Sinopec.

President of the Ceylon Fuel Distributors Association Shelton Fernando alleged that Sinopec was to get 150 of the best gas stations in the country. When other foreign players entered the market they, too, would get the best gas stations in the country, he said.

“The owners of selected 22 gas stations are not willing to enter into agreements with Sinopec. These gas stations already have contracts with the CPC. Therefore, CPC should continue to supply fuel to these gas stations. The government said it would appoint a regulatory commission in parallel to foreign companies entering the retail fuel market, but that has not been done,” he said.

The CPC said that 128 gas stations that had entered into agreements with Sinopec would start distributing fuel from 28 August.