CPC will not revise fuel prices despite losses: Chairman

26 October 2017 05:27 pm - 12     - {{hitsCtrl.values.hits}}

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The Ceylon Petroleum Corporation (CPC) today said it will not revise fuel prices despite heavy losses incurred during the past ten years.

CPC Chairman Dhammika Ranatunga said the CPC had incurred a loss of Rs. 300 billion during the past 10 years and during the last nine months it incurred a loss of Rs. 68 billion due to the sale of fuel to state owned subsidiaries.

“The LIOC (Lanka Indian Oil Corporation) has asked for a price increase. However the CPC will not increase fuel prices,” he said.

Addressing the media yesterday Ranatunga said Rs. 11 billion was due from the SriLankan Airlines which had exceeded its rs. 9 billion credit ceiling.

“The highest amount of Rs.40 billion has to be recovered from the Ceylon Electricity Board (CEB). The CPC will not increase fuel prices as a result of the losses,” Mr. Ranatunga said.

He said despite the dues the current CPC management was looking at alternatives and altered the procurement mechanism, allowing alternative crude oil types.

“The recent tender was awarded for the supply of alternative crude by breaking the supply monopoly, resulting in a saving of around USD 800,000 per single shipment. With the proposed new refinery, CPC will be able to broaden its crude oil procurement options,” he said.

“The new CPC Management has fast-tracked the introduction of additional filtration facilities for jet fuel at Kolonnawa, in compliance with standards set by the Joint Inspection Group (JIG).

“This will ensure all jet fuel that CPC receives to pass through a filtration process, reducing the risk of contamination to the shore tank.

“This helps the procurement process greatly as CPC can remove the conditions in the tender process and open up the competition and reach out to a larger supply base, at far more competitive rates, leading to savings approximately USD 250,000—300,000 per shipment,” he said.

“These changes allow the CPC to run smoothly despite the losses,” he said. (Chaturanga Pradeep)

Pix by Pradeep Pathirana

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  Comments - 12

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  • ceylon Thursday, 26 October 2017 06:16 PM

    this corperation can make billions of profits but losess only because corruption.privertise it.then private owner pay billions of tax. via DM Android App

    ANTON Thursday, 26 October 2017 06:36 PM

    IF YOU REVISE THE PRICE, PRIVATE BUS OWNERS MIGHT USE MORE AND MORE KEROSENE OIL AND WE MIGHT HAVE TO WEAR NOSE COVERS.

    Arnold Thursday, 26 October 2017 06:42 PM

    Please privatize close down Sri Lankan Airlines.

    Vajira Thursday, 26 October 2017 07:40 PM

    Please do it and talk. Dont talk before via DM Android App

    Kadiya Thursday, 26 October 2017 07:48 PM

    No at this time anyway, with elections round the corner,No?

    Sincere Thursday, 26 October 2017 08:42 PM

    If the vehicle users are responsible for those heavy losses in CPC, then there is no harm in increasing prices of fuel!

    DillonDP Friday, 27 October 2017 09:25 AM

    How can you make loss and still keep the prices low, there is no logic, either restructure the establishment or make it profitable. making loss and also continue to make loss will definitely be born by the public, its not your fathers asset its public property, do your duty to the public, or you should get out.

    gamini Friday, 27 October 2017 10:14 AM

    is this a wise way of doing business?loss es in CPC are not because consumers get subsidized fuel, bu it is because of corruptionand over spending onm administration

    sunil Friday, 27 October 2017 10:15 AM

    show me one state institution that is running profitabily

    aruna Friday, 27 October 2017 01:44 PM

    opportunity cost of privatization is 368billion Rs Taxe income from the profit. Same story for SLA.

    aruna Friday, 27 October 2017 01:44 PM

    opportunity cost of privatization is 368 billion Rs Taxes income from the profit. Same story for SLA.

    aruna Friday, 27 October 2017 01:44 PM

    opportunity cost of privatization is 368 billion Rs Taxes income from the profit. Same story for SLA.


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