CBSL annual report reveals CPC's massive losses

COLOMBO (News 1st) - Although fuel prices have shown large fluctuations in global markets in recent times, domestic retail prices have not been adjusted since 2015. The latest report from the Central Bank reveals, by end 2017 the accumulated losses of the Ceylon Petroleum Corporation (CPC) amounted to Rs. 217.3 billion. The Central Bank's annual report reveals that the Brend Crude Oil price on a barrel in 2017 had increased by 21.6% in turn, the CPC which spent USD 46.30 to import a barrel of crude oil in 2016 and had to spend USD 57.79 for the same in 2017, which is an increase of 24.8%. Accordingly, the total cost per litre of 92 Octane Petrol was Rs. 126.41, however, the sale revenue per litre of the same was only Rs. 113. The subsidy per litre was Rs. 13.41 and the total annual subsidy is calculated to be Rs. 16.234 billion. Similarly, the total annual subsidy from 95 Octane Petrol was Rs. 2.366 billion, while the total annual subsidy from Diesel was Rs. 7.961 billion. Kerosene recieves an annual subsidy of Rs. 5.454 billion, and total loss from all products amounts to Rs. 32.015 billion. Speaking on 'Face The Nation' programme on TV1, Senior Deputy Governor of the Central Bank, Dr. Nandalal Weerasinghe, said delaying an automatic pricing formula for fuel will make the debt management of loss-making Ceylon Petroleum Corporation difficult in the wake of rising global oil prices.