Cabinet nod to open up aviation fuel market

Wednesday, 1 March 2023 00:32 - - {{hitsCtrl.values.hits}}

The Cabinet of Ministers at its meeting on Monday approved to opening up of the aviation fuel market and allowing new entrants to offer competitive prices.

The proposal to open up the market for high-quality, new entrants, for a more competitive price submitted by Power and Energy Minister Kanchana Wijesekera was approved by the Cabinet of Ministers at its meeting on Monday.

“All this while the Ceylon Petroleum Corporation (CPC) supplied Jet A-1 fuel required for the cargo and passenger flights called at airports via a monopoly. But with the foreign exchange crisis, CPC struggled to meet the demand and caused problems for the airlines,” Cabinet Co- Spokesman and Minister Bandula Gunawardena told journalists at a post-Cabinet meeting yesterday.

He said it has been accepted that it is appropriate to allow supplying Jet-A fuel to Sri Lanka under the maximum supply limits to the parties who supply Jet A-1 aviation fuel to the other countries so as not to hinder the supply of fuel produced at Sapugaskanda Refinery of CPC.

Analysts however pointed out that jet oil is one of the key profit-earning sectors of the CPC and the rationale to open up the market was unclear.

The shortage of foreign exchange remains the key issue for the worsening economic crisis and CPC.

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