PUCSL chief says CPC overcharging consumers 

• Says CPC keeps margins well above 30% from its fuel imports
• Points out fuel is priced at such exorbitant prices to cover CPC’s mismanagement 
• Says moneys from higher margins, fuel prices not going to Treasury but to CPC

Public Utilities Commission of Sri Lanka (PUCSL) Chairman yesterday reiterated that the government must look into the activities of the Ceylon Petroleum Corporation (CPC) without further delay as the State utility is on the continuous look-out to pass on the burden of its severe financial mismanagement to the consumers. 

Addressing a press conference in Colombo yesterday, PUCSL Chairman Janaka Ratnayake asserted that CPC is selling fuel to consumers with a high margin, which should not be the case given the current challenges faced by the public due to the economic crisis in the country. 

“They (CPC) cannot say they don’t have money to buy fuel. This is the plight of these large State-owned enterprises. The financial discipline is not in proper order. The hierarchies must look into this matter and ensure the pricing is done properly so that the consumers benefit in some way,” asserted Ratnayake. He shared that the CPC keeps margins well above 30 percent from fuel it imports.From Petrol 92, the margin is 36 percent; from Petrol 95 it is 44 percent; and from auto diesel it is 35 percent. Ratnayake further said CPC’s margin from super diesel is 35 percent, crude oil 60 percent, and furnace oil 58 percent. The total cost per litre for the different fuel types are; Petrol 92 – Rs. 298.87, Petrol 95 – Rs. 308.82, auto diesel – Rs. 299.72, super diesel – Rs. 336.99, crude oil – Rs. 170.18, and furnace oil – Rs. 175.27. 

“We have seen that based on the fuel pricing formula, the CPC charges exorbitant prices for the oil imports. The latest purchasing invoice of CPC shows that the selling price is much higher than the prices at which the fuel was imported. These are excessive charges,” said Ratnayake.  The PUCSL Chairman made these statements based on the data collected from Sri Lanka Customs.  “It is a lot they (CPC) are charging from consumers. The revenue generated is not going to the government, or the Treasury, but to the CPC. It is like the black hole. The money is being sucked into CPC,” Ratnayake quipped.   He stressed it is not reasonable for the mismanaged utility to say it does not have money while it charges such high prices from consumers.