Currently, CPC earned a profit of Rs. 31.5 per a litre of auto diesel. From this year January to May, it had earned a total of Rs. 6727 million profit from 216.67 million litres of diesel, according to the Ministry.

Petroleum Industries Minister Chandima Weerakkody told the media in Colombo that CPC had made a profit Rs. 36 billion during the first five months of this year. However, he said CPC was owed Rs. 365 billion having supplied fuel to government institutions including SriLankan Airline and Ceylon Electricity Board (CEB).

Minister Weerakkody assured that the retail prices of petrol or diesel would not be increased due to the new government tax imposed on diesel.

According to CPC statistics, hitherto it sells a litre of petrol at Rs. 117 which costs Rs. 113.39 including a tax of Rs. 64.40 a litre. Diesel costs the CPC Rs. 79.88 a litre including a tax of Rs. 28.02 a litre while the selling price is Rs. 95 a litre.
Commenting on the Lanka Indian Oil Company (LIOC), the Minister said LIOC had increased its value added petroleum products but prices of 92 and 95 Octane petrol, auto and super diesel would be same and there wouldn’t be any increase.

Reiterating that CPC would not be privatized under any circumstances, Minister Weerakkody noted there was a plan to re-structure the CPC to increase its productivity and efficiency.

Denying the speculations that the operations of CPC would be handedover to IOC, the Minister said the decision to modernize the CPC had been taken after a thorough study.

Referring to the country’s only refinery, Minister Weerakkody said the refinery was outdated and it should be modernized using new technology.

According to the 2012 KBC report, CPC decentralization would cost USD 2.2 billion but currently it would cost around USD 1.7 billion, Minister Weerakkody said.

(By Maheesha Mudugamuwa – island.lk)