Minister of Power and Energy Kanchana Wijesekera today held a discussion with the representatives of the trade unions from Ceylon Petroleum Corporation (CPC) and Ceylon Petroleum Storage Terminals Limited (CPSTL).

The minister said he briefed the trade union leaders on the Cabinet proposal that was approved last Monday (June 27) and the cargo plan for July/August.

In a tweet, he also said that the proposal to invite oil producing companies to import fuel and operate retail sales was explained to the trade union reps.

On Monday, the Cabinet of Ministers approved the proposal presented by the Minister of Power and Energy to provide long term agreements with selected companies following the formal procedure, allowing them to import, distribute and market fuel to Sri Lanka.

The Ceylon Petroleum Corporation contributes around 90% of the total fuel supply to the country while the remaining 10% is supplied by the Lanka Indian Oil Company (LIOC). 

The government says ensuring an uninterrupted fuel supply to the country has become a challenge due to the current foreign exchange crisis in Sri Lanka.

“Therefore, it seems appropriate to enter into long-term agreements with oil companies in the oil-producing countries to enable them to import and sell fuel using their funds so as not to put pressure on the country’s foreign exchange problem,” it had said.