Request from the Head of PUCSL to examine CPC’s massive profit margins on imports and fuel sales. Janaka Rathnayake, Chairman of the Public Utilities Commission of Sri Lanka (PUCSL) urged the Government to investigate the Ceylon Petroleum Corporation (CPC) for making huge profit margins on fuel imports and sales.
While speaking to the media, he stated that the revenue generated by importing and selling fuel did not go to the Government or the Treasury, but rather to the CPC, which had significant financial burdens.
The Chairman referred to the CPC as a “dark hole,” claiming that the revenue generated by importing and selling fuel is sucked into the CPC and no one sees it. Despite charging higher prices, the CPC lacks the funds to purchase fuel.
Rathnayake stated that the Power and Energy Ministry’s fuel formula had mentioned exorbitant prices on imports of all these fuel varieties into the country.
According to the most recent revision, a barrel of Octane 92 petrol cost US$157, )ctane 95 cost US$158, Diesel cost US$174 per barrel, Super Diesel cost US$176 per barrel and kerosene cost US$171.
A barrel of kerosene was imported for US$105, according to information received from the Sri Lanka Customs Department a month ago. A barrel of diesel was sold for US$ 111, a barrel of furnace oil for US$ 75, and a barrel of gasoline for US$ 100.
However, according to the CPC’s fuel formula, the price was nearly US$50 per barrel, resulting in a massive cost figure. The CPC set the fuel price based on the most recent fuel price revision.
Furthermore, the Government charges less than Rs.50 per litre in taxation for the aforementioned fuel imports. As a result, the CPC stands to profit handsomely from fuel imports and sales, with profits ranging from Rs.171 to around Rs.258 per litre.
As a result, the Chairman of the PUCSL urged the political hierarchy, Ministries, Ministers and any interested Parliamentarians, Treasury, Central Bank and other local banks to investigate this.