• CPC says refinery has also saved over $1bn in foreign exchange

The Sapugaskanda Oil Refinery has generated a profit of USD 417 million during the first nine months of this year, Ceylon Petroleum Corporation (CPC) Chairman D J Rajakaruna said.

Speaking during an interview conducted by the Government Information Department, he said the refinery, which had previously been considered for closure, had made a significant contribution to the country’s finances.

“The Sapugaskanda Refinery had been removed from the CPC after obtaining Cabinet approval and had been dismantled. That refinery has shown us a profit of USD 417 million during these first nine months. The refinery that was going to be shut down has saved more than USD 1 billion in foreign exchange for the country during these nine months,” he said.

He added that the CPC had recorded a profit of Rs 28 billion during the first nine months despite the prevailing crisis. “We are going according to a plan. By the end of this year, we expect a profit of between Rs 28 billion and Rs 30 billion.” 

Rajakaruna further said the benefit of the recent decline in global fuel prices would be passed on to consumers in the future. “The reports that global oil prices are coming down started emerging only the day before yesterday. Before that, the global oil price had continued to increase. We can give that benefit in the future. We are closely monitoring the situation. As soon as we receive that benefit, we will pass it on,” he said.

Comparing current domestic fuel prices with those in February, he said the increase in Sri Lanka had been lower than the rise in global prices. “Compared to February, petrol was at Rs 292. It is now Rs 424. That is an increase of more than 45%. When the global market price increased by 85, we increased the local price by only 45. The price of auto diesel had increased from Rs 281 to Rs 397, an increase of Rs 43. It is clearly visible that, compared to the global market price, we have not increased the domestic market price by the same amount.” 

Rajakaruna also said this had been possible partly because of Government subsidies provided during April, May and June. “The Government gave a subsidy of Rs 100 per litre for diesel and Rs 20 per litre for petrol. Last month, the Government provided a subsidy of Rs 70 per litre for diesel. Rs 41 billion has also been allocated for this month. This has enabled the CPC to keep domestic fuel prices at roughly half the level of the actual global market price."