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‘LIOC increases prices to cut down losses at CPC’s expense’
Huge increase in sales volumes disastrous for Ceypetco – CPC chairman
By Shamindra Ferdinando
Ceylon Petroleum Corporation (CPC) Chairman Sumith Wijesinghe says Lanka IOC has increased its fuel prices by Rs. 5 a litre to curtail its losses by making its customers obtain fuel from Ceypetco fuel stations.
Wijesinghe said so when The Island sought an explanation as regards the mechanism in place to revise fuel prices and whether Lanka IOC required the government permission to do so. Wijesinghe emphasised that Lanka IOC move was calculated to discourage customers coming to its fuel stations thereby would sharply increase financial losses on the state enterprise as its fuel was highly subsidised to protect the local consumer.
“In other words, the surge in sales volumes will automatically increase losses. The same result can be achieved by increasing petrol and diesel by just two rupees, each,” Wijesinghe said.
Responding to another query, Wijesinghe pointed out that Lanka IOC clearly sought to cut down on their losses by forcing its regular customers to visit Ceypetco fuel stations. The outspoken official said that as their competitor is on record as having said that they suffered a loss of Rs. 20 and Rs.40 per ltr, on the sale of petrol and diesel, respectively, Lanka IOC strategy was clear.
Lanka IOC is a subsidiary of Indian Oil Corporation which comes under the purview of Ministry of Petroleum and Natural Gas, is the only private party that operates fuel stations here.
CPC Chief said as a result of increased volume of sales their stocks would be depleted much faster. Wijesinghe described the situation as ‘grave’ and quite a concern to cash-strapped loss making public sector enterprise.
According to him, the problem was much worse than the public realised. The Indian strategy would cause a catastrophic situation, Wijesinghe said.
Wijesinghe admitted that Lanka IOC didn’t require Energy Ministry consent to revise fuel prices. The enterprise that entered the Sri Lankan market during Ranil Wickremesinghe’s premiership in 2003 is the eighth largest listed company here.
The official stressed that urgent revision of fuel prices was a dire necessity as the overall financial situation remained precarious. Ceypetco’s network of fuel stations is much larger than Lanka IOC’s.
Lanka IOC in a statement issued Thursday night said that the selling price of petrol and diesel here remained significantly low as compared to the prices prevailing in the neighboring countries. “The prices of petrol and diesel need to be in line with the prices prevailing in the international market,” the company said in a statement e-mailed to The Island.
Lanka IOC refrained from revising the prices of Lanka Super Diesel and LP 95. The previous price revision took place on June 12.
Asked whether Ceypetco would match the Lanka IOC’s price increase immediately to counter the competitor’s strategy, CPC Chairman said that the issue at hand required a thorough examination of the full picture as they couldn’t contain the rapid deterioration of the finances unless a substantial increase was implemented.
Claiming the mounting losses were unbearable, Managing Director LIOC Manoj Gupta said that the company had increased the prices to the barest minimum. Responding to The Island queries, Gupta said that Lanka IOC didn’t require GoSL approval to revise fuel prices. According to the Indian official, Lanka IOC had been empowered by ‘virtues of previously signed agreements with GOSL to take independent commercial decisions.“
As at Oct. 21 the international price of Gasoil 500ppm was at $ 95.62/barrel and Gasoline92 $ 99.37/barrel.
The last price revision took place on June 12, 2021. However, since then the Brent crude oil prices have increased from $72/barrel to $86/barrel in the international market.
Energy Minister Udaya Gammanpila on Oct. 15 revealed that when raised the possibility of Treasury assistance to the CPC with Finance Minister Basil Rajapaksa, he was told in no uncertain terms the Finance Ministry was not in a position to do so.
In the wake of simmering controversy over the fuel price hike announced by Minister Gammanpila on June 12 with General Secretary of the SLPP attorney-at-law Sagara Kariyawasam demanding the minister’s resignation, the latter declared that the revision of fuel prices was the prerogative of the Finance Minister.
Attorney-at-law Gammanpila explained that in his capacity as the Energy Minister, he only made the announcement of a decision taken at a meeting attended by both President Gotabaya Rajapaksa and Premier Mahinda Rajapaksa.
Asked by The Island yesterday (22) afternoon whether the Ceypetco would match Lanka IOC price hike immediately, Minister Gammanpila said ‘No.’
In terms of the 2003 agreement with the UNP government, Lanka IOC has the strategically located China Bay oil tank farm, the largest such facility situated between the Middle East and Singapore. The tank farm, formerly owned and operated by CPC, has 99 tanks, each with a capacity of 12,000 litres. Of them, only 15 of these tanks are operational at the moment.
Commenting on the ongoing talks with about half a dozen countries to ensure uninterrupted fuel supplies, the Pivithuru Hela Urumaya (PHU) leader Gammanpila said that the cabinet of ministers recently approved a proposal to obtain USD 3.6 billion loan from Oman to repay in 20 years with a five-year grace period. According to him, the Omani offer had been undoubtedly the best and the government was going ahead with it. The offer now before the cabinet of ministers would give the government an opportunity to use USD 500 mn overdraft to order refined products from India.
Minister Gammanpila said that there had been other offers from China, UAE and Singapore though at the moment they were committed to Omani and Indian proposals.
Asked to explain the Indian offer, Minister Gammanpila said that USD 500 overdraft could be obtained with 4 percent interest payable in one year.
“Once settled, we’ll be eligible for USD 500 mn overdraft again.”
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A committee will be appointed to formulate a national policy on medical education – PM
Prime Minister Dr. Harini Amarasuriya stated that a committee will be appointed to formulate a national policy on medical education, following requests by student unions emphasizing the need for such a policy. She also invited student unions to submit their views and proposals toward the formulating of this policy.
The Prime Minister made these remarks during a discussion held on Friday [February 27] at Temple Trees with members of the Medical Faculty Students’ Action Committee.
During the meeting, the Medical Faculty Students’ Action Committee outlined the issues currently faced by university students.
The Prime Minister emphasized that there will be no restriction whatsoever on students’ freedom and noted that discussions would be held with the Vice-Chancellors regarding these matters in the future.
Officials of the Ministry of Health pointed out that delays in providing internship training for medical graduates are primarily due to accommodation issues. They further stated that steps are being taken to address these concerns and that approval has been sought to allocate five additional hospitals to expand internship training opportunities.
Officials from the Ministry of Education, Higher Education and Vocational Education highlighted that funds have already been allocated for the construction of new hostel facilities to resolve accommodation issues at the Universities of Wayamba, Kurunegala, Kuliyapitiya, Sabaragamuwa, and Moratuwa, and construction will commence once land allocation processes are completed. Attention was also drawn to the transportation difficulties faced by medical graduates undergoing training at the Kurunegala and Kuliyapitiya faculties. Discussions will be held with the Sri Lanka Transport Board to provide appropriate solution.
It was further revealed that attention has been given to developing facilities in medical faculties and that no decision has been taken to suspend post-intern appointments.
The discussion was attended by the Secretary to the Prime Minister Pradeep Saputhanthri, Chairman of the University Grants Commission Senior Professor Kapila Senevirathne, officials representing the Ministries of Education and Health, and members of the Medical Faculty Students’ Action Committee, including its convener Navodya Marasinghe.
[Prime Minister’s Media Division]
News
“We welcome investors and tourists visiting Sri Lanka who contribute to strengthening economic and cultural ties”– PM
Prime Minister Dr. Harini Amarasuriya stated that as Sri Lanka moves towards sustainable growth, the country welcomes investors and tourists who contribute to strengthening economic and cultural ties.
She made these remarks while addressing a special celebration and dinner reception organized by the Sri Lanka India Society to commemorate the 77th Republic Day of India and the 78th Independence Day of Sri Lanka, held on Thursday [February 26] at the Taj Samudra Hotel in Colombo.
During the event, the official magazine of the Sri Lanka India Society was launched, and the book “Port of Call” was presented to the Prime Minister and the Indian High Commissioner.
Addressing the gathering, Prime Minister Dr. Harini Amarasuriya noted that the Sri Lanka India Society since its establishment in 1949 has contributed to strengthening relations between the two nations, through cultural engagement, dialogue, and sustained interaction. The Society has supported ties not only between the two governments but also between the peoples of both countries.
She further stated,
“Over the past year, the strength of India–Sri Lanka bilateral relations has been evident. I express gratitude for the support extended by the Indian government in facilitating the exposition of the sacred Devnimori relics in Sri Lanka.
When Cyclone Dithva affected Sri Lanka, India responded promptly through “Operation Sagar Bandhu,” providing assistance in the rescue and relief efforts.
I appreciated the announcement of a long-term relief package amounting to USD 454 million in support of Sri Lanka’s recovery efforts. India continues to work closely with Sri Lanka in its journey towards sustainable development.
The Sri Lanka–India partnership spans multiple sectors, including economic development, energy, connectivity, trade and investment, digital transformation, health, education, maritime security, and people-to-people ties.
As Sri Lanka progresses towards sustainable growth, we welcome increased investments from Indian businesses and greater tourist arrivals from India, while further strengthening our economic and cultural ties”.
She reaffirmed that India is Sri Lanka’s closest neighbour and an important partner, Sri Lanka is committed to advancing cooperation for the benefit of the people of both countries and the wider region.
Speaking at the event, Indian High Commissioner Santosh Jha stated that the relationship between the two countries goes beyond formal diplomacy and is a strong and special partnership. He noted that the introduction of the first international degree offered outside India in Sri Lanka marked a new chapter in educational cooperation. He also highlighted the continued expansion of collaboration in connectivity and people-to-people relations, adding that India–Sri Lanka relations are experiencing significant growth in the current period.
The event was attended by ambassadors, diplomats, officials of the Indian High Commission, and government representatives.
[Prime Minister’s Media Division]
News
Chief Sanghanayaka of Sabaragamuwa Province felicitated
The “Gauravabhinandana” ceremonial felicitation was held in honour of the Chief Sanghanayake of the Sabaragamuwa Province of the Malwathu Maha Vihara Chapter of the Maha Vihara tradition of the Siyamopali Maha Nikaya; former Pirivena Examiner; Rajakiya Pandith; holder of Master; Scholar of classical texts; recipient of the Kala Bhushana title; Vinaya Keerthi Sri Dhammdinna Saranapala; the Most Venerable Kaeligama Vijithananda Nayaka Thero on Wednesday [25th of February] at the auditorium of the Rathnapura District Secretariat
The event was organized under the patronage of the Anunayake of the Malwathu Chapter of the Siyamopali Maha Nikaya, Most Venerable Acharya Agga Maha Panditha Niyangoda Dharmakeerthi Sri Sangharakkhitha Vijithasiri Abhidhana Anunayake Thero.
The presentation of the symbolic casket to the Most Venerable Kaeligama Vijithananda Nayaka Thero took place with the participation of Prime Minister Dr. Harini Amarasuriya and the Governor of Sabaragamuwa Province, Ms. Champa Janaki Rajaratne.
Addressing the gathering, the Prime Minister stated:
“It is a privilege for me to participate in this felicitation ceremony held in appreciation of the religious and social service rendered by the Chief Sanghanayaka of the Sabaragamuwa Province, Most Venerable Kaeligama Vijithananda Nayaka Thera.
When we reflect on his life journey, it serves as a profound inspiration to us all. Having entered monastic life as a disciple of the Sabaragamuwa prelate, the late Most Venerable Kelle Sri Saranananda Thero, the Nayaka Thera has now rendered over five decades of distinguished service following higher ordination.
After obtaining a Bachelor of Arts degree from the Vidyodaya University, he devoted several decades as a Pirivena teacher and examiner, enlightening thousands of students. He has also authored numerous scholarly works. His classical literary contributions, especially for students of Pirivena education, are of exceptional value”.
The Prime Minister further recalled with gratitude the commitment shown by the Nayaka Thera, centred around the Ratnapura Mahawala Sri Dharmayathana, to uplift the spiritual and social well-being of the local community, and extended her wishes for good health and long life for the continuation of his invaluable service to the Buddha Sasana.
The occasion was also graced by the presence of Most Venerable Karagoda Uyangoda Maithreemurthi Thera, Supreme Mahanayaka of the Sri Lanka Amarapura Maha Sangha Sabha; the Anunayaka of the Sri Lanka Ramanna Maha Nikaya, Waleboda Gnanissara Thera; Lecturer of the University of Peradeniya and Deputy Registrar of the Malwathu Chapter, Panditha Mahawela Dhammakkhanda Rathanapala Thera; the Chief Sanghanayaka of Ratnapura and Uva Wellassa and former Vice-Chancellor of Uva Wellassa University, Bethgamuwa Dhammadinna Thera; along with members of the Maha Sangha. The occasion was also attended by the Minister of Buddhasasana, Religious and Cultural Affairs Sunil Senavi, Governor of Sabaragamuwa Province, Ms. Champa Janaki Rajaratne, Member of Parliament Shantha Padmakumara, former Members of Parliament A. A. Wijethunga and Janaka Wakkumbura, Ratnapura District Secretary Chinthana Udaya Nanayakkara, Basnayake Nilame of the Maha Saman Devalaya Ishan Sanka Mapitigama, Mayor of Ratnapura Indrajith Katugampala, and many other distinguished invitees.



[Prime Minister’s Media Division]
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