Sri Lanka CPC earns up to Rs 50 profit per liter of petrol now – Minister

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ECONOMYNEXT – Sri Lanka’s state fuel retailer, Ceylon Petroleum Corporation (CPC), is currently earning between Rs 45 and 50 per liter of gasoline as the second largest loss-making state-owned company seeks to recoup past losses said Energy Minister Kanchana Wijesekera.

The minister revealed this during a forum which discussed the challenges and opportunities in the island nation’s oil sector.

“CPC now earns Rs 45-50 profit on every liter of petrol. We have to recoup some past losses,” Wijesekera told the forum organized by the Sri Lankan branch of the German Friedrich Naumann Foundation later on Thursday (01).

Wijesekera reintroduced the pricing formula in June this year after the CPC was starved of US dollars to import fuel. The fuel shortage led to street protests and continued until earlier this month. Former President Gotabaya Rajapaksa and his brother former Prime Minister Mahinda Rajapaksa were forced to resign from their posts amid fierce protests.

According to the pricing formula, prices were reduced once in early July by Rs 20, but have kept the price high since June this year despite falling global oil prices.

A senior government official who has worked on economic reform told Economy Next that the government would recoup losses by including it in the fuel pricing formula and similar practice would be followed to deal with losses by the Ceylon Electricity Board. and Sri Lankan. Airlines companies.

Wijesekera told Economy Next that including losses in the fuel pricing formula requires Cabinet approval and the approval process has already started.

Selling at subsidized rates, depreciation of the rupee, dues from public institutes and overpaid, inefficient and overstaffed staff have been major reasons for past losses. Losses have accumulated to around 700 billion rupees (nearly $2 billion). (Colombo/02/09/2022)

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