United Petroleum Ship Turned Away Due to Internal Issue

COLOMBO (News 1st) - Chairman of the Ceylon Petroleum Corporation Janaka Rajakaruna on Thursday (12) revealed that none of the three private companies, approved by the previous government to operate in Sri Lanka's local fuel market, have made any investment in the country.

Rajakaruna said that these companies, including Sinopec, United Petroleum, and RM Parks, have only been purchasing fuel rather than investing in infrastructure or expanding operations in Sri Lanka.

Meanwhile, reports surfaced of a recent incident where a fuel shipment from the United Petroleum Company, specifically the MT Hafnia Taurus, was turned away at the Colombo Port.

The vessel, which arrived in Sri Lanka on December 2 carrying 30,000 metric tonnes of fuel, was turned back on December 6 due to internal issues within the company.

Despite this, CPC Chairman Rajakaruna assured the public that the situation would not cause any fuel shortages in the country.

MT Hafnia Taurus was carrying 15,000 metric tonnes of Octane 92 fuel and 15,000 metric tonnes of diesel, which was not unloaded due to the company's internal issue, he explained.

Dr. Mayura Neththi Kumarage, Managing Director of the CPC, added that the corporation had offered to supply the required fuel to United Petroleum's suppliers and customers, stating that private companies' internal problems should not be treated as national issues.

The three private companies were granted permits by the previous government to enter the local fuel market in an effort to avoid a recurrence of the fuel shortages experienced during the economic crisis.

The companies were each allotted 150 fuel stations previously operated by CPC, with agreements in place for the opening of new stations.

However, Rajakaruna pointed out that these companies had not contributed significantly to the sector's development.

When questioned about the regulation of the petroleum industry, Rajakaruna explained that the Ministry currently oversees the regulation. He revealed that, under the CPC's manifesto, the goal is to eventually transfer regulatory authority to the Public Utilities Commission. Legal formalities are being worked on to make this transition.

"The issue with these companies stems from decisions made during the dollar crisis. They were allowed into Sri Lanka when there were concerns over dollar reserves, but now their presence is unnecessary as the crisis has eased," Rajakaruna said. "These companies have not made any real investments—purchasing fuel is their only activity."

Rajakaruna emphasized that, despite these challenges, CPC is fully capable of managing the situation. "Even though these companies have 300 fuel stations, we are prepared to handle the fuel supply and ensure the market runs smoothly," he added.

Rajakaruna mentioned that certain terms of the agreements with these companies need to be amended, a fact acknowledged during meetings with the International Monetary Fund (IMF). The Ministry Secretary is reportedly taking steps to address these concerns.