The Ceylon Petroleum Corporation (CPC) is confident that last Friday’s (11) price hike of kerosene and diesel will enable them to stop making losses on their sales.
Responding to a question, CPC Chairman Mohamed Uvais Mohamed told The Sunday Morning that the fuel supplier was confident the CPC could break even on the sale of the two types of fuel within the coming few months following the price change.
“We think we can break even in a month or two. This is a good outcome for the CPC. It makes us more sustainable. We have not done the calculations, but it is possible that the price revision for kerosene and diesel may help our bottom line,” Mohamed told The Sunday Morning, indicating a possibility of loss reduction.
The CPC increased the price of auto diesel by Rs. 15 (3.6%) to Rs. 430 and the price of kerosene by Rs. 25 (7.4%) to Rs. 365 per litre effective from Friday (11) midnight.
The price hikes were announced a few days after State Minister of Power and Energy D.V. Chanaka told Parliament that fuel prices had increased in the global market and that the CPC was selling diesel at a loss of Rs. 12 per litre and a litre of kerosene at a loss of Rs. 22.
The CPC and the Ministry have been campaigning to introduce cost-reflective pricing for fuel since November last year. The request has been turned down by the Cabinet several times.
The Sunday Morning last month reported that the CPC had managed to turn profitable following the fuel price revisions in June, with the State-Owned Enterprise recording a net profit of Rs. 6.3 billion in July and Rs. 5.6 billion in September.
– By Asiri Fernando
Fuel price hike: CPC looking at breaking even
13 Nov 2022
Fuel price hike: CPC looking at breaking even
13 Nov 2022
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