United Petroleum, a 100% Australian-owned energy company, has officially withdrawn from the Sri Lankan fuel market, according to the Daily FT. The decision marks a major setback for the Government’s plan to diversify the retail fuel sector.
The company, which entered Sri Lanka in August 2024 under the fuel market liberalization program, was one of four international players, alongside Shell, Sinopec, and RM Parks, that signed agreements with the Ceylon Petroleum Corporation (CPC).
CPC Managing Director Dr. Mayura Neththikumarage confirmed the development, noting that United Petroleum had formally communicated its exit three months ago.
“The company cited concerns about operational conditions and pointed out that Sri Lanka’s market size was too small to generate the level of profits they anticipated,” Dr. Neththikumarage said.
United Petroleum had already suspended its fuel supply operations in December 2024 after unsuccessful negotiations with the Government, before making its full exit.
