Fuel Failure

July 06, 2010 (LBO) – Sri Lanka’s state-owned oil refiner, Ceylon Petroleum Corporation (CPC), suffered a loss of almost 13 billion rupees in the first six months of this year, a senior official said. Petroleum ministry secretary Titus Jayewardene said the refiner, which has a 50,000 barrels a day refinery at Sapugaskanda, north of Colombo, suffered a loss of 7.5 billion rupees in the first three months alone.

“In the first two months of this year because the Sapugaskanda refinery was closed for maintenance all petroleum imports were refined products,” Jayewardene told our sister news website Vimasuma.com.

“Therefore, the CPC’s losses increased sharply.”

In the next three months the CPC is expected to make a loss of about two billion rupees a month, he said.

The CPC is one of the biggest loss-making state enterprises with its products heavily taxed by the government which does not allow the refiner to retail fuel at market prices.

The CPC is also owed billions by state institutions which buy fuel from it.