Dec 31, 2013 (LBO) – Sri Lanka’s state-run Ceylon Petroleum Corporation has reached break even status in 2013, after a 60 million US dollar legacy oil derivative cost that went against it, a minister said. Petroleum industries minister Anura Yapa said the agency is also collecting arrears from state agencies including Ceylon Electricity Board, SriLankan Airlines and had started paying down its bank debt.
In 2013 it had absorbed a 60 million US dollar charge on an oil derivative in a settlement with Standard Chartered Bank and still broken even, compared to a loss of 92 billion rupees in 2012, minister Yapa said.
Replying queries about introducing a cost-based pricing formula he said it was under discussion but at the moment prices would be held at current levels for the moment.
“But I am not saying they will not change if world market prices go up,” he said.
“The petroleum ministry is the regulator, I do not think it should decide the prices. It should be a matter for the CPC.”
Minister Yapa said selling fuel below cost was a potential ‘bank bankrupting’ process.
In 2011 the manipulation of prices with loans from state banks which were ultimately accommodated by central bank