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 What happened to the Rs. 32 billion?

In 2017, the Ceylon Petroleum Corporation, supplied Sri Lanka fuel with fuel at prices lower than the production cost. 92 Octane petrol was provided at Rs. 13.41 less per litre, 95 Octane petrol at Rs. 13.25 less per litre and Auto diesel at Rs.4.25 less per litre.Kerosene which is essential to the general public, was provided at a loss of Rs.27.53 per litre. Accordingly in 2017, the government through Ceylon Petroleum Corporation , was able to provide the general public with fuel subsidies amounting to Rs. 32 billion.

 What happened to the Rs.147 billion?

According to forecasts submitted in May, 2017, the Ceylon Petroleum Corporation was to suffer a loss of Rs. 14.425 billion at the end of the 2017. But the new management of the CPC took stern steps to arrest the situation, making sound and prudent decissiona while eliminating waste and corruption at all levels. These measures enabled CPC to convert the forecasted loss, into a Rs. 5 Billion profit for 2017 despite the increase in global oil prices toward the latter part of the year. In total, CPC contributed Rs.147 billion via taxes to the Government’s consolidated fund, for the benefit of the nation.

 What happened to the oil import monopoly?

There was previously monopoly on fuel imports to the island, controlled by a few importers who have unchallenged due to their political influence. But the CPC’s current management, broke through this by reforming operating procedures and establishing a competitive tender procedure, starting from June, 2017. Today several globally reputed companies are newly registered with the CPC, enabling the country to import the fuel of
the highest quality at competitive prices, which Sri Lankan economy and people will immensely benefit from.

 What happened to Sapugaskanda?

The Sapugaskanda oil refinery which was established in 1969, is central to the nation fuel supply, yet needed overhauling to meet the increase fuel demand of the country. Within the first six months its tenure, the management of CPC took steps to begin the process of modernizing the refinery and expedited the installation of a vital new boiler, while moving to complete the automation of the site’s distribution terminal. The next phase of this expansion has also been planned. In addition, the management has set in motion plans to build a much-needed new refinery and a new facility that will enable the country to import the locally refine crude oil, which will lead to Rs.60 billion annual saving.

 What happened to those competent personnel in the corporation?

A healthy institution is one where its management maintain a positive attitude towards its employees and their progression, The new management of CPC has taken steps to eliminate the effects to external influence of people’s jobs, and to establish a robust promotion scheme within the corporation that will recognize high-performers.. In addition, a new recruitment and training manual is being developed to energies and empower the corporation’s workforce.

 What happened to the oil tank in Kolonnawa?

The process of expanding kolonnawa’s fuel storage capacity 25% started on the 22 nd of December 2017, 20 years after the previous increase in the terminal’s capacity. Upon completion, the upgrade will improve national energy security while boosting overall storage capacity, enabling the country to better manage fluctuating global oil prices, by purchasing and storing oil at lower prices.

 What happened to the pipes transporting oil from the harbor?

Overhauling of the 76 years old, 12’’ (Diameter) fuel pipeline connecting the Colombo harbor and the Kolonnawa terminal, was expedited in September,2017 and will completed in March 2018. The project will eradicate leakage and reduce fuel unloading times, enabling the country to save nearly Rs.600 million annually. In addition, the tender process for the laying of new pipes (18’’ and 14’’) is now in the final stage.

 What happened to the standards of aviation fuel?

The establishment of a filtration of system, required for aviation fuel, as per JIG international standards, was delayed for 17 long years. Under the new management and through the efforts and dedication of the corporation’s engineers, the installation of the system was completed within 4 months and declared open on 25 th January 2018. The new system is expected to save the country Rs.500 annually.

 What happened to the pipeline to transport fuel from Muthurajawela to Katunayaka?

The pipeline carrying the fuel from Muthurajawela terminal to Katunayaka airport, had been designed to run through highly- populous areas in the suburbs of the Colombo leading to excessive implementation delays. To expedite the project , the new management of CPC proposed an alternative route for the pipeline to be laid parallel to the Colombo-Katunayaka expressway. Driven by the planning and initiative of the
corporation’s engineers, the project is in progress. After completion it will save the country Rs.450 million. The concept for fuel pipelines to traverse expressway has received the government’s consent and the establishment of fuel serving corridors is in the pipeline.

 What happened to the contract awarded for the fuel supply system at the airport?

With the establishment of new terminal at the Bandaranaike airport, the new management quickly took steps to develop infrastructure facilities to supply the increased demand or aviation fuel. The contract for the installation of a fuel supply system at the airport has been delayed since 2013 due to various reasons. The new management of CPC, under the principles of good governance, issued a new tender to the global market and were successful in obtaining bids from suitable international contractors within 45 days. In comparison to the previous tender, the new tender has resulted in an over Rs. 480 million saving for the country.

 What happened to the fuel mafia?

A fuel mafia has been active in this country. But the management of CPC has taken stringent measures to ensure that compromise on the quality of fuel brought in to the country. Only fuel of the highest quality is permitted into the country and shipmen’s not meeting the country’s specified standards have been rejected. An increasing number of raids have also been carried out to stifle illegal activities that tamper with the country’s
fuel security. Further the tender process inviting contractors to construct a state of the art laboratory, in line with international standards, to inspect the standards and quality of fuel, has also been concluded.

 An honest and brave leadership, and an effective management loyal to the country?

Ceylon Petroleum Corporation is today, fully committed to energizing the future of our beloved motherland: Led by the honest and brave leadership and Hon.Arjuna Ranatunga, Minister of Petroleum Resources Development, along with Hon. Dr. (Mrs) Anoma Gamage, Deputy Minister and Mr.Upali Marasinghe, Secretary of the Ministry, and the staff of the ministry; guided by the management of Mr.Dammika Ranatunga, Chairman of Ceylon Petroleum Corporation and the Board of Directors; and with dedication of our officers and staff.

Current Local Fuel Prices

 

 

 

 

 

 

Petrol 92 Octane : Rs. 145.00 Per Litre

Petrol 95 Octane : Rs. 157.00 Per Litre

Auto Diesel : Rs. 118.00 Per Litre

Lanka Super Diesel : Rs. 130.00 Per Litre

Kerosene : Rs. 70.00 Per Litre

Lanka Industrial Kerosene : Rs. 110.00 Per Litre

Furnace Oil 800Sec : Rs 80.00 Per Litre

Furnace Oil 1500Sec : Rs 80.00 Per Litre

Furnace Oil 3000Sec : Rs 80.00 Per Litre

Source : Ceylon Petroleum Corporation

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