CPC saves $ 300 m in foreign exchange in 2020 due to crude oil price drop

Thursday, 21 January 2021 02:04 - - {{hitsCtrl.values.hits}}

CPC Chairman tells COPE that Govt. was able to take advantage of crude oil price drop last year
COPE discussed Special Audit Report on storage and distribution of petroleum in country

Ceylon Petroleum Corporation (CPC) has saved $ 300 million in foreign exchange in 2020 due to the drop in world crude oil prices, CPC Chairman Sumith Wijesinghe told the Parliament Committee on Public Enterprisers (COPE) yesterday. He said that the Government was able to take advantage of the fall in the price of a crude oil last year due to the outbreak of the coronavirus and several other reasons.

The CPC Chairman stated this in response to a question raised by COPE member SJB MP S.M. Marikkar on the profit made by the Ceylon Petroleum Corporation during the last year due to the fall in crude oil prices.

The Committee chaired by SLPP MP Charitha Herath met to discuss the Special Audit Report on the storage and distribution of petroleum.

Discussions were also held regarding the pipeline carrying oil from the port premises to Kolonnawa storage and steps that are being taken to repair it, officials said.

CPC officials further stated that measures have been taken to provide a new house for each existing house that are damaged due to the pipeline.

The COPE also drew attention to the possibility of using the existing oil tanks in the Trincomalee and Hambantota areas for the needs of the CPC.

Officials of the Ceylon Petroleum Corporation said that steps have been taken to develop Muthurajawela and Kolonnawa terminals to improve the storage capacity of fuel. The COPE Chairman recommended CPC officials to submit a feasibility report to the COPE on the capabilities of these developments.

The Committee also drew attention to the commencement of oil transport by train and it was revealed that the 30% of fuel is already being transported by train and it will be increased to 42% soon. COPE commended this move.

Ministers Mahindananda Aluthgamage, Mahinda Amaraweera, State Minister Indika Anuruddha, MPs Patali Champika Ranawaka, Anura Kumara Dissanayake, Nalin Bandara, Eran Wickramaratne, Premnath C. Dolawatta, S.M. Marikkar, S. Rasamanikkam and Isuru Dodangoda were present at this meeting. MP Isuru Dodangoda participated as an observer.