Fuel under pricing formula from 1Q 2016

Friday, 11 December 2015 00:03 - - {{hitsCtrl.values.hits}}

By Ashwin Hemmathagama – Our Lobby Correspondent

The much delayed fuel pricing formula will be introduced during the first quarter of 2016, Minister of Petroleum Resources Development Chandima Weerakkody confirmed to Parliament yesterday.

Joining the Committee Stage Debate of Budget 2016, the Minister listed the outstanding debt which affects the profitability of the Ceylon Petroleum Corporation.

“By the end of May this year, the public sector owes CPC Rs.30.4 billion. The Kelanitissa Powerstation owes Rs.1,650 million and the Ceylon Electricity Board Rs.1.8 million.

Lak Vijaya power plant owes the CPC Rs.280 million and the Chunnakkam Northern power plant Rs.648 million,” listed the Minister.

According to Minister, SriLankan Airlines (Rs. 22,409 million), Mihin Lanka (Rs.1,472 million), Sri Lanka Railways (Rs. 1,181 million), the Road Development Authority (Rs.474 million) and the Maga Neguma Road Construction Equipment Company (Rs.283 million) are other State entities that owe payments to the CPC.

Western Province Road Development Authority (Rs.428 million), State Development and Construction Corporation (Rs.7.74 million), Sri Lanka Navy (Rs.429 million), Sri Lanka Army (Rs. 806 million), Sri Lanka Air Force (Rs.394 million) and Sri Lanka Police (Rs. 62 million) are the remainder of a long list of debtors.

“On 30 May 2015, the CPC settled a loan outstanding of Rs.477.57 billion. CPC owed Rs.195.70 billion to Bank of Ceylon, Rs.203.61 billion to People’s Bank, Rs.34.36 billion to the National Iran Oil Corporation, Rs.0.46 billion to the Asian Development Bank, Rs.0.61 billion to the Exim Bank and Rs.42.94 billion to other institutions,” he added.