CPC losses identified : 8 key multiple reasons stand out!

Minister of Energy Kanchana Wijesekera has outlined the key reasons for the Ceylon Petroleum Corporation (CPC) to incur losses. 

In a Twitter message, the Minister said the following are the multiple reasons for CPC losses.

1. Selling products at subsidized rates for years 
2. Rupee Depreciation – purchases made before March were for 90-180 days of credit purchased at Rs. 203 and the payback rate is Rs.367-390
3. Dues from Sri Lankan airlines – USD 300 million, Ceylon Electricity Board- Rs. 60 billion
4. High Premiums, Demurrage, and Bank Interest due to the financial situation 
5. Overstaffed, Inefficient, and Overpaid 
6. 25% salary increment on a collective agreement since 2012 
7. Not operating Refinery and depending more on imported Refined products 
8. High Distribution costs