Gas price irks union

By Nirmala Kannangara

The Ceylon Petroleum Corporation (CPC) has incurred losses amounting to millions of rupees due to the Consumer Protection Authority's irregular pricing formula process on CPC LP gas, reliable sources from the CPC told The Sunday Leader.

The CPC on a Supreme Court directive supplies its entire liquid petroleum output to Laugfs Holdings according to the Saudi Aramco prices, which is far less than the cost price.

A CPC higher official on the basis of anonymity said that although the corporation sells the LP gas according to Saudi Aramco prices, the CPC incurs huge losses due to its failure to cover up the freight and port charges and other government taxes.

"This is very unreasonable as we import the crude oil after paying freight and port charges and government taxes. But when it comes to the sale price of LP gas, which is one of the refined petroleum products we are not allowed to add the extra cost to the purchaser. We give Laugfs Holdings at the same cost we purchase from the world oil market.

"As a result the CPC has had to bear the freight and port charges, government taxes, processing and storage charges, which is a loss to the corporation," he said.