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The first shipment of Chinese fuel supplier Sinopec, the third fuel supplier to enter the Sri Lankan fuel market after India’s Lanka Indian Oil Corporation (LIOC) and the state–run Ceylon Petroleum Corporation (CPC), is to arrive at the island early next month.

State Minister of Power and Energy D. V. Chanaka said that with the entrance of Chinese
fuel supplier, a decision would to be taken on the ongoing quote system to supply fuel to the consumers.

Grappling with the shortage of fuel, due to the island-nation's worst-ever economic crisis and a severe dollar crunch, Sri Lanka penned a 20-year deal allowing the Chinese energy giant to enter the fuel market. The $100 million investment would allow Chinese fuel supplier to enter Sri Lanka fuel retail market and to operate 150 fuel stations currently run by CPC, and to invest in 50 new fuel stations.

According to the agreement Sinopec has to "ensure uninterrupted fuel suppliers to
consumers", without relying on Sri Lanka's domestic banks for dollars.

With the entrance of the third fuel supplier, the Sri Lankan government will also to introduce a Maximum Retail Price (MRP) for fuel as per the pricing formula of the government starting from August.

Chanaka on Sunday said that steps would also be taken to replace the ongoing fuel price formula with a MRP, in order to create a fuel competitiveness among the suppliers.

Under the agreement Sinopec is to sell various petroleum products, including 92 and 95
octane petrol, 500 PPM diesel, diesel 10 COPPM, petroleum jet fuel, and other diesel and petroleum products.

Ranked as the 5th on Fortune's Global 500 List in 2021, Sinopec is the largest oil
and petrochemical products supplier and the second-largest oil and gas producer in China, the largest refining company, and the third-largest chemical company in the world.