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ECONOMYNEXT – Leading global group of energy and petrochemical company Shell has been asked to import premium fuel products in addition to widely used petrol and diesel before starting the fuel distribution, State Power and Energy Minister D V Chanaka said.

The Shell and RM Parks (Private) Limited have already signed retail brand license and product supply agreements. However, the start of fuel distribution through 150 local fuel stations has yet to be started.

“They have already brought diesel and petrol consignments to Sri Lanka,” Chanaka told reporters at a media briefing in Colombo.

“They (Shell) requested to allow them to start work after they brought those two products. We told them that we have no ability to grant such permission.”

“We can give that opportunity only when they bring all 4 main products diesel, petrol, Octane 95 and super diesel.”

The State Minister said the reason behind such move was to compel Shell to use its own dollars to import premium petrol and diesel instead of buying from the local market.

“Our expectation was they should use their own dollars to bring down the products. They can’t use dollars from Sri Lanka market and if they do they deviate from the agreement,” he said.

“Once they bring down all four products, they can start the distribution. The premium products are coming on May 6 and 7. So May 10th they can start their distribution.

RM Parks (Private) Limited is a distributor of Shell fuels in the in North American fuel retailing market.

RM Parks (Private) Limited will rebrand to Shell an existing network of 150 retail fuel stations across Sri Lanka, which it was awarded a contract to operate for an initial period of 20 years by the Sri Lankan Ministry of Petroleum and Energy in 2023.

Shell company last month, however, has said the first Shell branded stations are expected to open in the third quarter of 2024. (Colombo/April 26/2024)