CPC up in arms over fuel price formula

A top official from the Ceylon Petroleum Cooperation (CPC) said that due to no official from the CPC being involved in the formulation of the fuel pricing formula, the CPC has to date not given its approval to the formula.

He pointed out that the CPC will not bear the losses brought about by the implementation of the fuel price formula, which had been drawn up with the involvement of four to five officials of the Ministry of Finance.

He stressed that a fuel pricing formula related to petroleum products which are imported and produced by the CPC should be conducted according to their parameters.

It is also said that CPC officials had even informed President Maithripala Sirisena about it.

As usual, based on the fuel price revision that was announced on 10 July, the fuel price formula had been formulated by four to five Finance Ministry officers.

“Although the Finance Ministry officials who had drawn up the fuel price formula had advised our officials to sign it, they had refused to do so as they were not prepared to take the blame for a formula that had been compiled without any contribution from the CPC,” said top officials from the CPC.

They emphasized the cost that is incurred per litre of petrol should be allowed to be decided by the CPC.

“But, if the Government decides to grant a tax concession to the public, based on the CPC Act, its cost has to be borne by the Government. But, the Government is not taking that responsibility and we are forced to take it instead,” he added.