CPC earns profit but struggles to operate independently amid foreign competition

Colombo, October 4 (Daily Mirror) - Even though the Ceylon Petroleum Corporation (CPC) has started earning profits, it is unable to operate independently due to the presence of other foreign petroleum companies operating in the country, Petroleum Storage Terminals Limited (CPSTL) Chairman D.J.A.S  De S. Rajakaruna said.

Addressing the media, he said that due to political interference, an opinion was created in the country that the CPC could not continue its work, leading to the entry of separate foreign petroleum companies.

The CPC had the capacity to continue its operations if there had been no political interference, as proven by the fact that the corporation has now started earning a profit again.

"Lanka IOC, Sinopec Lanka Energy (Pvt) Ltd, RM Parks (Pvt) Ltd and Australia's United Petroleum are currently operating in the local market as a result of political interference. According to the agreements signed with these companies, the same pricing formula established in 2022 is currently being followed. These companies also determine the fuel prices based on this formula," he said.

"After the petroleum profits were passed on to the people, the government had to redirect those profits to foreign petroleum companies, as they claimed they were unable to achieve their profit margins through the pricing formula. That is how the previous government's ministers treated those companies.

"It is doubtful whether the foreign petroleum companies are competitors or investors in the country. Therefore, the CPC is unable to account for the losses or profits from refinery operations," he said.