CPC warns of financial issues as fuel is supplied on credit to CEB

CPC warns of financial issues as fuel is supplied on credit to CEB

CPC warns of financial issues as fuel is supplied on credit to CEB

Written by Staff Writer

27 Jan, 2023 | 1:39 pm

COLOMBO (News 1st) – Sri Lanka's Human Rights Commission has received a letter bearing the signature of the Managing Director of the Ceylon Petroleum Corporation stating that the present financial situation at the CPC could lead to a disruption of operations at the country's oil refinery.

The letter noted that the CPC is heading towards a situation where future fuel imports will be in jeopardy as fuel is continuously provided on credit.

The letter from the CPC Managing Director warns that this could lead to another fuel crisis in the country.

The letter bearing the signature of the Managing Director of the Ceylon Petroleum Corporation states that it is paramount to ensure the continuous operation of the country's oil refinery when providing a continuous supply of fuel.

It noted that though the CPC can provide furnace oil and naphtha to the Ceylon Electricity Board at a cost that is less than what is incurred when importing fuel, an issue is likely to arise in importing new stocks of crude oil and refined petroleum products as the existing stocks are provided on credit, despite the CEB still not settling its dues. 

The Managing Director of the Ceylon Petroleum Corporation states that several rounds of discussions revealed that the Ceylon Electricity Board does not have the funds to procure the fuel.

It notes that despite the difficulties experienced, as the supply of electricity is a national requirement, fuel worth Rs. 111 Billion was delivered to the Ceylon Electricity Board.

The letter added that though the Public Utilities Commission of Sri Lanka agreed on the 25th of January to amend the electricity tariff, the CPC could have been able to provide fuel for a continuous supply of electricity if the PUCSL had reached that decision at the appropriate time.

The Managing Director of the Ceylon Petroleum Corporation states that the CPC is one of the leading government institutions that is engaged in state activities and upon considering all sectors in the country, it is committed to supply fuel without any disruption.

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