The Ceylon Petroleum Corporation (CPC) has canceled its 2024 tender aimed at developing new fuel stations under a dealer-owned model. The tender, which was issued earlier this year just weeks ahead of the scheduled presidential election in September, had sought expressions of interest for constructing and operating fuel stations at commercially viable and strategically important locations.

According to CPC Managing Director Mayura Neththikumarage, the call for applications attracted a large response, with 217 submissions. However, the tender was subsequently terminated because the location proposals lacked a scientific basis, resulting in overly clustered and impractical site selections. "As fixed locations for the proposed fuel stations had not been provided, anyone with a 40-perch plot was eligible to apply," Dr. Neththikumarage said. He noted that many requests were concentrated in the same towns, leading to an impractical number of fuel stations in certain areas—some towns saw applications for five additional stations where five already existed.

The tender process had required only a nominal processing fee of Rs. 25,000 per application. Following the cancellation, the CPC formally closed the initiative to prevent further uncoordinated development.

Separately, the CPC has collaborated with the University of Moratuwa to conduct a scientific study to identify optimal locations for new fuel stations. This analysis pinpointed 70 sites where new filling stations could serve genuine needs, particularly in areas with no fuel stations within a 20-kilometer radius or in remote regions lacking access. The selection criteria prioritized actual demand over mere land availability.

Dr. Neththikumarage indicated that the Energy Ministry will determine the next steps regarding the invitation of expressions of interest, either by releasing all opportunities simultaneously or in phased stages. The CPC emphasized that future site selection would be guided by technical and scientific considerations to ensure strategic and commercial viability.

The move signals a shift toward more data-driven planning in the expansion of Sri Lanka’s fuel retail infrastructure, likely to support better distribution and accessibility across underserved regions.