The accumulated losses of the Ceylon Petroleum Corporation (CPC) reached Rs. 7.3 billion by April 15 this year.
Petroleum Resources Minister A.H.M. Fowzie told ColomboPage that this loss will be recovered strategically within a short period of time with CPC starting to make profits.
We have already implemented many plans to cut the unnecessary costs which enables CPC to make profits in the near future. One such programme is to import crude oil in large quantities. Previously all imports were made in small quantities. The new method will enable CPC to save shipping and other related costs instead of placing irregular orders, which is expensive, the Minister explained.
As CPC sells 40 million litres of petrol and 144 million litres of diesel per month, the Minister also considers the cost per employee, restrained at Rs. 0.41, as another advantage.
Another action we have taken is to unload all our crude oil imports at Muthurajawela installation instead of using the Port of Colombo provided facilities. The facilities which we previously used at Port of Colombo cost us much more, the Minister said.
Adding more to the Minister s plans for recovery, the proposed refinery expansions at Sapugaskanda are also expected to increase refining capacity from 50,000 barrels per day to 100,000 barrels per day.
The CPC was set up as a state enterprise by Act. No. 28 of 1961 in Parliament, and further amendments were carried out subsequently with the intention to conduct business as an importer, exporter, seller, supplier and distributor of petroleum products and also to carry on exploration for the exploiting, producing, and refining of petroleum.