Probe the huge profit margins CPC makes on imports, sales of fuel: PUCSL Head

7 July 2022 09:11 pm - 13 - {{hitsCtrl.values.hits}}

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The Public Utilities Commission of Sri Lanka (PUCSL) Chairman, Janaka Rathnayake, today urged the government to investigate the Ceylon Petroleum Corporation (CPC) for making huge profit margins on fuel imports and sales.

While addressing the media, he said the revenue after importing and selling fuel not gone to the government or to the treasury but to the CPC where they had huge financial burdens.

The chairman referred to the CPC as a 'dark hole' and said the revenue after importing and selling fuel is sucked into the CPC and nobody sees anything. Even though the CPC is charging higher prices, they don't have the funds to buy fuel.

However, there were two fuel price revisions during the last 45 days in May and June.

Rathnayake said based on the fuel formula that came out through the Power and Energy Ministry, it had mentioned exorbitant prices on imports of all these fuel varieties into the country.

According to the latest revision, a barrel of octane 92 petrol was imported at US$157, octane 95 at US$158, diesel at US$174 per barrel, super diesel at US$176 per barrel and a barrel of kerosene at US$171, he said.

As per the information received from the Sri Lanka Customs Department (SLCD) a month ago, a barrel of kerosene was imported at US$105. A barrel of diesel was sold at US$ 111, a barrel of furnace oil was imported at US$ 75, and a barrel of petrol was imported at US$ 100.

However, according to the fuel formula which the CPC came up with, the price was almost US$50 per barrel, and they arrived at a huge cost figure. The CPC had determined the fuel price based on the latest fuel price revision.

Moreover, the government is charging lesser than Rs.50 as taxation for the above fuel imports per litre. Therefore, the CPC is having that opportunity to making a huge amount as profits ranging from Rs.171 to around Rs. 258 per litre on this imports and selling fuel.

This is the plight of these large organisations where the financial disciplines are not in proper order, he said.

Therefore, the PUCSL chairman urged the political hierarchy, Ministries, Ministers or any interested parliamentarians, treasury, central Bank, local banks to look into the matter to ensure that whether the pricing is done properly. (Chaturanga Samarawickrama)

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Comments - 13

Johan Thursday, 07 July 2022 09:39 PM

He makes sense...When lanka IOC is making huge profit, why cant CPC make profit....

Boris Vanculenberg Thursday, 07 July 2022 09:48 PM

At some point, someone should ask questions. You have the guts, we salute you

Athk69 Thursday, 07 July 2022 09:54 PM

All of these so calles officers must be in on it. No one will know where or even what to look at.

Bystander Thursday, 07 July 2022 10:38 PM

The normal protocol would be to clarify the discrepancy with the other party first. This was not done. Why? Why weren't the other board members notified even verbally (if a prior meeting was not possible) on such a sensitive issue. It just does not pass the smell test. Given the way he has chosen to operate, one wonder if there is a hidden agenda here? Or is he merely a bull in a china shop?

Jef Thursday, 07 July 2022 10:48 PM

THE IMF UN WORLD BANK OUR FORIEGN COUNTERPARTS SEE HOW SRI LANKAN POLITICS AND POLITICIANS OFFICIALS PLAY THE GAME YOU PEOPLE ARE DISGRASFUL AND DISGUSTING BUNCH OFF CROOKES THAT HAVE NO FEELINGS FOR THE POOR PEOPLE THE WHOLE NATION IS SUFFERING YET NOT ENOUGH DO WE LIVE IN HE'LL.....WITH DEVILS

Myuran Friday, 08 July 2022 12:37 AM

70 years of injustice to Tamil communities by the majority, this is pay back Time. I believe sl will be like this next 100 years.

Thirupathi M Friday, 08 July 2022 12:57 AM

All this have to blamed on a fail judicial system, that allowed these criminals to swindle money at they preferred and yet could not be held accountable under the county's law.

Maha Friday, 08 July 2022 01:28 AM

no fuel with CPC, price increased exponentially for IOC benefits

Tanky Friday, 08 July 2022 04:45 AM

That's greater than 50% more; US$. >200 million a month. Where or to whom is the money going. This is a big saving we can do to our dollars. Currently crude oil has breached below US$. 100. Something fishy.

Demuni Uduwara Friday, 08 July 2022 05:40 AM

Probe is a must ! Profitable IOC earn undue profit from our pricing formula, unethically.

roobarbie Friday, 08 July 2022 05:47 AM

But CPC claims that they are broke. Then where do all the profits go? Why top jobs at CPC are paid extraordinary salaries as if they are even richer than Microsoft?

Chris Friday, 08 July 2022 06:55 AM

The huge payroll consists of useless employees put in by politicians. There are 45k employees at Ceyptco. Doing what? Fuel given to CEB on credit. Another place bleeding money. These two places must be privatised. Don't always think the regime steals. The people are stealing too.

AJ Friday, 08 July 2022 07:35 AM

This empty headed boaster seems doing something sensible,wait and see where this heading

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Probe the huge profit margins CPC makes on imports, sales of fuel: PUCSL Head

Comments - 13

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