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Sri Lanka's CPC losse Rs9.8bn on fuel sales in two months
Thu Apr 12, 2018 8:03 am
Apr 12, 2018 07:28 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Sri Lanka's state-run Ceylon Petroleum Corporation has lost 9,886 million rupees in the first two months of 2018, selling petrol, diesel and kerosene, as crude prices spiked, cabinet spokesman minister Rajitha Senaratne said.
"We are watching international prices," he told reporters. "We want to see whether the prices come down."
Sri Lanka was expected to implement a price formula by March 2018 prevent state finances from being de-stabilized.
The CPC has lost 2,968 million rupees on 92-Octane petrol, 303 million rupees on 95-Octane petrol, 4,319 million on auto diesel, 150 million on super diesel, and 2,147 million on kerosene.
Sri Lanka cut fuel prices after the new administration came to power as oil prices fell in 2015 and 2016.
Petrol was cut from 150 to 117 rupees a litre, 95-octane from 158 to 128, auto diesel from 111 to 95 and super diesel from 133 to 110 rupees a litre.
Kerosene was cut from 81 to 65 rupees on January 22. On January 29 it was cut to 59, on November 28 to 40 amid concerns over and that the price cuts to favoured politically powerful businesses that used kerosene to power factories. On October 2017 kero had been further cut to 44 rupees a litre.
Kerosene which is similar to jet fuel is usually the most expensive to import. Petrol is the cheapest.
CPC has since started to limit sales to bulk customers cracking down on hapless distributors who responded to price signals set by the state.
The kerosene price cuts undermined a key reform of the Rajapaksa administration which raised the price to reduce mis-use of the subsidized fuel by large industries and was an economic folly of the 2015 and 2016 budgets analysts say. (Colombo/Mar12/2018)
ECONOMYNEXT - Sri Lanka's state-run Ceylon Petroleum Corporation has lost 9,886 million rupees in the first two months of 2018, selling petrol, diesel and kerosene, as crude prices spiked, cabinet spokesman minister Rajitha Senaratne said.
"We are watching international prices," he told reporters. "We want to see whether the prices come down."
Sri Lanka was expected to implement a price formula by March 2018 prevent state finances from being de-stabilized.
The CPC has lost 2,968 million rupees on 92-Octane petrol, 303 million rupees on 95-Octane petrol, 4,319 million on auto diesel, 150 million on super diesel, and 2,147 million on kerosene.
Sri Lanka cut fuel prices after the new administration came to power as oil prices fell in 2015 and 2016.
Petrol was cut from 150 to 117 rupees a litre, 95-octane from 158 to 128, auto diesel from 111 to 95 and super diesel from 133 to 110 rupees a litre.
Kerosene was cut from 81 to 65 rupees on January 22. On January 29 it was cut to 59, on November 28 to 40 amid concerns over and that the price cuts to favoured politically powerful businesses that used kerosene to power factories. On October 2017 kero had been further cut to 44 rupees a litre.
Kerosene which is similar to jet fuel is usually the most expensive to import. Petrol is the cheapest.
CPC has since started to limit sales to bulk customers cracking down on hapless distributors who responded to price signals set by the state.
The kerosene price cuts undermined a key reform of the Rajapaksa administration which raised the price to reduce mis-use of the subsidized fuel by large industries and was an economic folly of the 2015 and 2016 budgets analysts say. (Colombo/Mar12/2018)
Expert- Posts : 136
Join date : 2014-03-03
Re: Sri Lanka's CPC losse Rs9.8bn on fuel sales in two months
Sat Apr 14, 2018 12:49 am
Looks like LIOC is about to win its battle.
yellow knifeTop contributor
- Posts : 6980
Join date : 2014-03-27
Re: Sri Lanka's CPC losse Rs9.8bn on fuel sales in two months
Mon Apr 16, 2018 7:20 am
The incumbent government showed its immaturity to hold power with the way they handled oil price.
This is what I wrote sometimes back.
This is what I wrote sometimes back.
Re: LIOC.N0000 (Lanka IOC PLC)
by yellow knife on Thu Sep 22, 2016 7:10 am
Yes
In many years CPC was making losses while LIOC was making profit... Even at current levels LIOC will reach a very high EPS closer to what you mentioned.
Further LIOC has spent its cash on inventory when the Oil price was low.. They have increased the storage capacity as well...
LIOC will have a good time ahead and Price Forumla will help it to never report loss..
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Can some one see the logic of CPC making loss of 2 Billion per month and collecting revenue ?
Who will bear the loss of CPC... ? Tax payer..... What a never ending Mahadana Muttha style solution...Break the pot and cut the neck
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