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Thanks to its generosity to gas station owners, CPC bleeding to death, says FSP

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The Ceylon Petroleum Corporation (CPC) will lose about Rs. 25 billion in the coming 12 months at current rates, if it does not adjust the commission paid to gas station owners, Education Secretary of the Frontline Socialist Party (FSP), Pubudu Jagoda, told The Island yesterday.Jagoda said that the CPC made losses, mainly due to the bad decisions of its management. “For example, the CPC gives a commission to the gas station owners. Until mid-2019, CPC paid 2.5 percent of the price of a litre of fuel as a commission. So, for example when a litre of 92 octane petrol was Rs. 117, the gas station owner made a commission of Rs. 2.92. They insisted that the percentage was not enough and in July 2019, and it was increased to 3%.

The CPC also decided to place upper and lower caps because they didn’t want to pay colossal amounts as commissions, in case fuel prices went through the roof,” Jagoda said.

The CPC also decided that for Octane 92 petrol, the upper cap would be Rs. 167 and the lower cap would be Rs. 117 . “So, no matter how much the price increased, the CPC only pays three percent of Rs. 167 as the commission per a litre of 92 Octane petrol. For Octane 95 petrol, the upper cap would be Rs. 184 and the lower cap would be Rs. 128. For auto diesel, the upper cap would be Rs. 121 and the lower cap would be Rs 95. For super diesel, the upper cap would be Rs. 145 and the lower cap would be Rs. 110,” he said.Jagoda said that fuel prices had been revised in December 2021. The price of 92 Octane petrol was increased to Rs. 177 a litre and 95 Octane to Rs. 207 a litre.

“Instead of capping them at 167 and 184, the CPC paid three percent of the new prices as commission to gas station owners. On 18 January 2022, the Deputy General Manager, Finance, figured out something was wrong and wrote to the General Manager asking him what could be done. The General Manager sent a circular to gas stations on 10 March 2022, saying that the CPC had overpaid them and asked the owners to return the amount. Four gas station owners met the Minister in charge, Gamini Lokuge, who insisted that there was no need to pay and buoyed by that gas station owners went to court and got an injunction against the circular,” Jagoda said.

At that time, the CPC was losing Rs. 80 million a day as a result, Jagoda said. Despite that, the CPC lawyers did not appear on the first Court date, and on the second Court date, they agreed to extend the injunction.

“On the third day, the injunction was lifted but the CPC did nothing to collect the money. The problem is many ministers, and senior officials, have gas stations and they profit from this. Still the CPC pays extra to gas station owners. If this is stopped, the CP can reduce the prices of 92 Octane petrol by Rs. 9.17 , 95 Octane petrol by Rs. 12 rupees, auto diesel by Rs. 9.27 rupees, and super diesel by Rs. 10.95. The CPC pays Rs. 67.9 million extra a day to gas stations. If this continues, at the current price, and volume, the CPC will lose 25 billion in the next 12 months,” Jagoda said.



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‘IRIS Dena was Indian Navy guest, hit without warning’, Iran warns US of bitter regret

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A day after a US submarine sunk an Iranian Navy warship off the coast of Sri Lanka, the Foreign Minister of Iran, Sayed Abbas Araghchi, has warned that the US would “pay bitterly” for targeting a ship in international waters, The Tribune has reported.

Araghchi posted on social media platform X on Thursday saying, “The US has perpetrated an atrocity at sea, 2,000 miles away from Iran’s shores.”

The frigate IRIS Dena, a guest of India’s Navy carrying almost 130 sailors, was struck in international waters without warning, said the Iran Foreign Minister, adding, “Mark my words: The US will come to bitterly regret the precedent it has set.”

US Secretary of War, Pete Hegseth, on Wednesday confirmed that a US submarine fired a torpedo and sank the Iranian Navy vessel IRIS Dena west of Sri Lanka.

In a way, the Iran and US-Israel conflict has reached close to the Indian coast. The strike today at sea was almost 4,000 kms away from Iran, significantly expanding the radius of war. Already, fearing Iranian missile strikes, several US warships have moved eastward towards India.

These ships are in international waters. India has denied that any US Navy assets were using Indian ports. The Iranian ship, hit on Wednesday, was returning after participating in the international fleet review and exercise Milan hosted by India at Visakhapatnam.

The Iranian ship went down with almost 130 sailors on board missing. The Sri Lankan Navy, acting on a distress call, rescued 32 of the Iranian sailors. Hegseth confirmed the act by the US forces, saying the ship was hit in the Indian Ocean, stating, “an Iranian warship that thought it was safe in international waters. .. Instead, it was sunk by a torpedo”.

Hegseth did not name the Iranian ship that was attacked. But earlier, the Sri Lankan Navy reported the distress call from IRIS Dena when it was some 40 kms west of Galle, located on the south-western part of the island country. On February 16, the Iranian ship had sailed into the port of Visakhapatnam, where seventy-four nations participated.

Warships from Australia, Japan, South Korea, Russia, and dozens of others were anchored alongside the now-sunk Iranian vessel. Iran’s Navy Commander, Rear Admiral Shahram Irani, held talks with India’s Chief of Naval Staff on strengthening maritime security cooperation.

The theme was “United through Oceans.” Notably, the US Navy was supposed to send the guided-missile destroyer USS Pinckney to the exercise Milan; however, the ship was diverted to Singapore on February 15. The US did not field its warship in Milan, which had ships from Russia and Iran.

The exercise ended on February 25. Three days later, on February 28, the United States and Israel launched Operation Epic Fury. The IRIS Dena was transiting home. This morning at 5:08 a.m. local time, the IRIS Dena issued a distress call. Sri Lanka’s Foreign Minister, Vijitha Herath, informed parliament that two navy vessels and an aircraft were deployed. Thirty crew members were rescued and admitted to Karapitiya Hospital in Galle.

The Straits Times reported 32 critically wounded survivors. Reuters reported 101 missing and 78 wounded. The Sri Lankan Navy spokesman said the operation was conducted in line with the International Convention on Maritime Search and Rescue.

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Risk of power cuts due to use of low-quality coal,PUCSL warns

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The Public Utilities Commission of Sri Lanka (PUCSL) has warned of a possible risk of power cuts due to the use of inferior quality coal affecting generation capacity at the Lakvijaya Power Plant, according to a recent commission report.

The commission said the risk to the continuous electricity supply was assessed based on the peak demand forecast submitted by the Ceylon Electricity Board (CEB) for 2026.

According to the report, the analysis assumed that hydropower plants could contribute up to 1,300 MW to meet the night peak demand, while the Lakvijaya Power Plant (LVPS) would be able to contribute only up to 690 MW due to a capacity shortfall, assuming a 40 MW generation capacity reduction from each unit.

The PUCSL said the assessment was carried out taking into account the planned maintenance schedule submitted by the CEB. Under the schedule, Unit 1 of the Lakvijaya plant is due to undergo maintenance checks and repairs in June for a period of 25 days, while Unit 2 is scheduled for maintenance in July for another 25 days.

The report also noted that the 270 MW West Coast Power Plant is scheduled to undergo maintenance in April for 10 days, while the 150 MW Kelanitissa Combined Cycle Power Plant (KCCP 2) is expected to undergo maintenance during May, June and July.

Under normal conditions, the report said, there is a potential risk of a generation capacity shortage if electricity demand reaches 3,030 MW in April, 3,070 MW in June and 3,000 MW in July.

The highest recorded night peak demand so far in 2026 was 2,949 MW on February 25.

The PUCSL further warned that if one coal unit or any major power plant becomes unavailable from the existing generation mix, there would be a significant risk of a generation capacity shortage to meet the night peak demand, particularly during April, June and July.

Energy sector analysts said the use of substandard coal could further aggravate operational challenges at the Norochcholai plant, potentially affecting generation efficiency and reliability if corrective measures are not taken promptly.

By Ifham Nizam

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Sajith demands clear statement from govt. about Iranian vessel sunk close to Galle and another located near Colombo port

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Sajith Premadasa

Opposition and SJB Leader Sajith Premadasa yesterday demanded a “clear statement from the government regarding this, as well as on the Iranian ship that was attacked near Galle, the number of personnel involved, and other related details,” following the sinking of an Iranian naval vessel in waters off Sri Lanka.

Making a special statement in Parliament, Premadasa said that information had been received about another Iranian vessel in Sri Lanka’s maritime boundary near the Port of Colombo and urged the government to immediately clarify the situation.

Premadasa said the government should also issue a special statement regarding international media reports that the Iranian Navy ship IRIS Dena had been sunk in the Indian Ocean with a torpedo attack by a US submarine.

He said the Sri Lanka Navy had carried out a search and rescue mission following the incident, a move that the Opposition appreciated.

However, the government had not yet informed Parliament of the exact location of the attack, whether the incident occurred in Sri Lankan waters or what diplomatic measures had been taken in response, Premadasa said.

“It has been revealed via international media that the Iranian Navy ship ‘IRIS Dena’ was sunk following an attack by a US submarine in the Indian Ocean,” he said.

The Opposition Leader added that the failure of the government to brief Parliament on an incident of such magnitude was preventing Members of Parliament from properly carrying out their duties.

Premadasa said several international media outlets as well as US Secretary of War Pete Hegseth had confirmed that a torpedo had been launched from a US submarine targeting the Iranian naval vessel, although the government and the Defence Ministry had denied those reports.

“The government must make an official announcement in this regard,” he said.

Premadasa further told Parliament that information had also come to light about another Iranian ship currently within Sri Lankan territorial waters off the Colombo Port, stressing that the government must immediately clarify the matter.

by Saman Indrajith

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