CPC facing financial crisis: Susil

3 November 2012 03:25 am

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)