Pumping Back

The government is to get Attorney General’s advice to take back a one third stake in the retail fuel sector held by the Treasury, and hand it back to state owned Ceypetco. The government is to get Attorney General’s advice to take back a one third stake in the retail fuel sector held by the Treasury, and hand it back to state owned Ceypetco. The downstream fuel sector was thrown open over two years ago for three players – Ceylon Petroleum Corporation, Indian Oil Corp., and one more to be selected.

Ceypetco’s 300 sheds were parcelled out into three, with a restriction on building new sheds until 2007. The third share for a new entrant is still being held by the Treasury.

All common petroleum infrastructure including a refinery, storage depots and pipelines were put into a common user facility, with all three players holding a one third stake.

The sale of the last stake was to bring in about US$ 85 mn. But the government changed and reforms were shelved before a third player could be picked.

“If we are not going to sell a third stake then we have to take a decision to give back one third of shares held by the Treasury back to Ceypetco,” Power and Energy M