8 key reasons for CPC losses

August 5, 2022 at 3:53 PM


Minister of Energy Kanchana Wijesekera has outlined the key reasons for the Ceylon Petroleum Corporation (CPC) to incur losses. 

In a Twitter message, the Minister said the following are the multiple reasons for CPC losses.

  1. Selling products at subsidized rates for years 
  2. Rupee Depreciation – purchases made before March were for 90-180 days of credit purchased at Rs. 203 and the payback rate is Rs.367-390
  3. Dues from SriLankan airlines – USD 300 million, Ceylon Electricity Board- Rs. 60 billion
  4. High Premiums, Demurrage, and Bank Interest due to the financial situation 
  5. Overstaffed, Inefficient, and Overpaid 
  6. 25% salary increment on a collective agreement since 2012 
  7. Not operating Refinery and depending more on imported Refined products 
  8. High Distribution costs