Jan 03, Colombo: The state-owned petroleum supplier, Ceylon Petroleum Corporation (CPC) incurred losses of approximately Rs. 95 billion, its Managing Director Susantha De Silva has said.
Despite hiking fuel prices several times last year, the CPC incurred losses due providing fuel at subsidized prices and to the delay in payment by state institutions for fuel supplied, the official said.
The fuel authority says that it incurs losses amounting to Rs 16 on the sale of a liter of diesel and Rs 26 on kerosene while the loss Rs 40 is incurred on a liter of crude oil.
The CPC increased the price of a liter of petrol by Rs. 10 on December 14.
According to the official, the power and energy supplier, Ceylon Electricity Board (CEB) owes Rs 47 billion to CPC.
The CPC increased the price of a liter of furnace oil by Rs. 25 from December 31 to recover the losses it incurs from supplying fuel to the CEB at concessionary rates.
The CPC says it was forced to increase the price of furnace oil as it incurs losses of Rs. 4.2 billion per month from providing furnace oil at concessionary price to CEB and several private sector power suppliers.
In addition to CEB, the national carrier SriLankan Airlines owes the CPC Rs 21 billion, the Defence Ministry Rs 14 billion and Sri Lanka Railway Rs 5 billion.
Although the CPC suffers losses form the diesel sales, the Corporation has no plans to raise diesel prices, the Managing Director has said.