Sinopec introduces competitive prices shaking up fuel market

Saturday, 2 September 2023 01:22 - - {{hitsCtrl.values.hits}}

Sinopec Energy Lanka yesterday announced revised fuel prices, but with a competitive edge over other two established players in the market — Ceylon Petroleum Corporation (CEYPETCO) and the Lanka Indian Oil Corporation (LIOC).

The China-based company wasted no time in making its presence felt by offering lower fuel prices compared to its local competitors.

As per the latest price revision of Sinopec, a litre of 92 Octane Petrol is priced at Rs. 358, 95 Octane Petrol stands at Rs. 414, Auto Diesel at Rs. 338, Super Diesel at Rs. 356 and Kerosene at Rs. 231.

“The pricing is applicable to all Sinopec franchise filling stations in Sri Lanka and valid till the next release published,” Sinopec Energy Lanka Deputy General Manager Arthur Cheng Anxiang said.

Sinopec’s supply plan is in progress, with the goal of gradually handing over all 150 filling stations to its management by October.

The timing of Sinopec’s entry could not have been more intriguing, as it coincided with the monthly fuel price adjustments from the two seasoned players in CEYPETCO and LIOC.

According to the latest price revision of CEYPETCO and LIOC, a litre of 92 Octane Petrol has increased by Rs. 13 to Rs. 361, while 95 Octane Petrol went up by Rs. 42 to Rs. 417, Auto Diesel went up by Rs. 35 to Rs. 341, Super Diesel went up by Rs. 1 to Rs. 359, and Kerosene increased by Rs. 5 to Rs. 231.

On 30 August Sinopec Lanka officially commenced its first franchising filling station in Mattegoda, with the first round of market promotion measures with a pump discount of Rs. 3 per litre for petrol and diesel.

Sinopec’s move to enter the Sri Lankan market with competitive prices has undoubtedly disrupted the existing fuel pricing dynamics. This has allowed consumers to have more choices, and it is expected that this competition may lead to further adjustments in fuel pricing strategies with two more players to join in the future.