United Petroleum enters Sri Lanka’s retail fuel market

Australian fuel company United Petroleum officially launched its services in Sri Lanka on August 22, 2024. The company is set to begin retail fuel operations in September, with plans to operate 150 dealer-owned and operated fuel stations across the island, according to Minister of Power and Energy, Kanchana Wijesekera.

United Petroleum is now the fourth foreign operator in Sri Lanka’s fuel market, joining Indian Oil Corporation (LIOC), China’s Sinopec, and U.S.-based RM Parks-Shell. This entry is part of the Sri Lankan government’s broader strategy to reduce the financial strain on the state-owned Ceylon Petroleum Corporation (CPC), particularly in terms of foreign currency for fuel imports.

In 2023, the Sri Lankan government awarded retail fuel licenses to United Petroleum, Sinopec, and RM Parks. As a condition of their operations, these companies are required to use foreign currency from their parent companies for imports and are prohibited from repatriating foreign currency from Sri Lanka.

This move aims to stabilise the country’s fuel supply and reduce reliance on CPC, helping to alleviate the ongoing economic challenges.