China based Sinopec expects to sell fuel for less than the maximum retail price set by the government starting from September 20, Power and Energy Minister Kanchana Wijesekera said.

He said that there is no obstacle to sell fuel at a lower price than the maximum retail price of the Ceylon Petroleum Corporation (CPC).

The minister said that Sinopec will start operations in Sri Lanka under the brand name of the company and the contracts will be signed with all fuel station owners by that time.

Sinopec’s entry into Sri Lanka will help reduce pressure on Sri Lanka’s foreign exchange reserves, and the country expects two other international fuel operators to start operations by October and November, Minister Wijesekera said.

“Reducing pressure on our foreign exchange with Sinopec’s entry will also help us increase fuel imports and strengthen the economy,” Wijesekera said.