CPC facing financial crisis: Susil

3 November 2012 03:25 am - 20     - {{hitsCtrl.values.hits}}

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The Ceylon Petroleum Corporation (CPC), which is facing a serious financial crisis, is re-considering whether to continue supplying fuel to the Ceylon Electricity Board (CEB) and Private Power Providers (PPP) if they do not settle at least a part of their bills, Petroleum Minister Susil Premjayantha said.

He said the CEB and the PPP have not paid for the fuel purchased during the past 10 months.

However, Power and Energy Minister Patali Champika Ranawaka said the CEB owed only Rs.19 billion and had incurred a loss of Rs.23 billion because the CEB had to purchase costly thermal power during the drought period.

“The CEB losses rose by another Rs.25 billion due to the increase in fuel prices. We are in the process of discussing the issue with the Treasury and I expect we can reach a compromise. What has happened is not anyone’s fault,” Minister Ranawaka said.

“We cannot continue like this as the CPC is in the midst of a serious financial crisis because our main clients had not paid up. They must at least pay part of the bills if we are to continue supplying fuel. Otherwise, we will have to seriously reconsider supplying fuel to the CEB and PPP,” Minister Premajayntha told Daily Mirror.

He said the power sector fuel requirement was entirely met by the CPC at a subsidized rate and this itself results in a huge loss. (SAJ)
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  Comments - 20

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  • mamath Saturday, 03 November 2012 03:30 AM

    Now You are talking..ha ha

    Ban Ban Saturday, 03 November 2012 03:32 AM

    What about the Rs. 30 billion that CPC must pay Standard Chartered and Deutsche Bank for the hedging fiasco? CPC has lost the cases versus both these banks.

    MWTA Saturday, 03 November 2012 03:43 AM

    No wonder. Ruined the education. Now CPC.

    Fair N Square Saturday, 03 November 2012 04:03 AM

    Naturally.. when dimwits like you are at the helm of these institutions... Professionalism is needed.. and NO private entity will keep on supplying when the debt is not settled. Trim the staff and make them efficient or send em home, cut costs and cut corners to save as much as possible. YOU ppl run in gas guzzler= high fuel consuming vehicles... STOP the waste..

    You are one of the politicos who has NO class, u jumped party so u may continue to RAPE the system and the masses at large...

    Adi Monday, 05 November 2012 04:49 AM

    Fuel price hike coming soon..pathetic justifications of these uneducated soulless creatures

    Royalist Saturday, 03 November 2012 05:40 AM

    How about a hedging deal with CEB?

    Naradha Sunday, 04 November 2012 03:28 PM

    This is what happens when they govern the country like family sittu business.

    thejoy Saturday, 03 November 2012 06:02 AM

    i really dont understand 1thing. every minister complains about running in loss. but what was done to make it profitable by those ministers? can someone explain me why this is? thank you

    wadakaya Sunday, 04 November 2012 03:40 PM

    you please stop robbing behind the curtain. CEB excuse is daylight nonsense

    Impartial guy Saturday, 03 November 2012 06:15 AM

    Hon.Minister, current situation of CPC arose not only due to non settlement of dues by CEB and PPP, how about the $60 mln to be paid to Deutche Bank, due to blunders government made. This is not the first or second payment, this is the third loss. Look like country is run by GCE 'o' level passed people. CEB dues of course no problem, Hon. Patali Champika Ranawaka will settle it when he get the payment from India for the electricity supplied by the minister to India. From top to bottom, every one who run the country is set of fools and jokers. Minister, you knew the bankrupcy of CPC only now. When this was brought to your notice in parliament you just slipped away by saying something. How about substanded oil you imported. Minister you and your government is totally responsible for the current state of CPC.

    Muthu Saturday, 03 November 2012 06:23 AM

    Now both CEB and CPC come under same Government. This shows the inefficiency of this Govt. To make things worse SL migth have to pay $60 million to whoever it is due because of mismanagement of hedging deal by uneducated jokers appointed by Govt. Who appointed these jokers?

    The Whistle Saturday, 03 November 2012 06:25 AM

    OKAY OKAY, we understand !!

    Stop crying and increase the prices by another 100%.

    and please stop blaming the politicians. They work so hard to build the country, so excuse their few hiccups costing a only few billions here and there.

    weha Saturday, 03 November 2012 06:39 AM

    He is a very slow person. think he is living about 10 years behind in the past ha ha ha

    Champika Ratnayake Saturday, 03 November 2012 06:53 AM

    This kind of Minister should have resigned from his post in any other civilised country!

    AIA Saturday, 03 November 2012 07:13 AM

    The incompetence in good governance is reaching its climax now

    Nodrog Sunday, 04 November 2012 01:54 AM

    Yes, he's so good at stating the obvious problems but not how he plans to solve the issues.

    Sonali De Silva Saturday, 03 November 2012 07:57 AM

    This is the only country where Petroleum, Electricity and water ministries are always running at a loss. We challenge the minister to walk his talk or keep quite. How any of these ministries can run at a loss is beyond comprehension. If we the consumer do not pay our bills on time our services will be disconnected and no petrol shed gives us petrol on credit. So where has the money gone?

    senevi Sunday, 04 November 2012 02:37 AM

    increase of fuel prices on the agenda.....
    this to create the path for that...
    NS

    Jagath Leanage Sunday, 04 November 2012 02:37 AM

    Wondering why he is telling all these stories to us.Patali Ranawaka and Asantha de Mel are good friends of Susil. Isnt it?

    garawi Sunday, 04 November 2012 02:42 AM

    Better late than never! Disband it and let the private sector, shell, BP, caltex, Agip, etc; come in and compete. That will bring the price down. You have proved that government cannot run business profitably, something we have know all the time.


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