Ex-Minister Wijesekera denies CPSTL chairman’s claim on compensation agreement

Colombo, November 5 (Daily Mirror) - Former Power and Energy Minister Kanchana Wijesekera condemned a recent statement by Ceylon Petroleum Storage Terminals Limited (CPSTL) Chairman D.J.A.S De S. Rajakaruna, clarifying that the previous government did not enter into any agreement with other operators to compensate them for losses incurred on sales or pricing.

In a post on the X platform, Wijesekera said that the Ceylon Petroleum Corporation’s (CPC) fuel pricing is independent and unrelated to competitor or operator pricing.

“The CPC operates as an industry participant, not as a regulator,” Wijesekera said. 

“The pricing formula was introduced to ensure that the CPC’s pricing is cost-reflective. The CPC can determine its monthly prices independently, and refinery gains and losses are factored into the formula as long as the CPC manages it,” the former Minister added.

He claimed that the previous government had no agreements to cover losses incurred by other operators and that the government is only obligated to pay compensation to operators, including the CPC, if a fuel subsidy is approved and provided to consumers.

Rajakaruna had claimed that, despite the CPC’s profitability, it cannot operate independently due to foreign petroleum companies in the country, and suggested that political interference led to foreign companies entering the market.