According to a government-submitted research, the Ceylon Petroleum Corporation (CPC) lost more than USD 90 million from March to September this year due to the procurement of improper crude oil inventories and an inaccurate pricing technique.
According to the calculations, two refined shipments of oil could be purchased for the total quantity lost.
The investigation focuses on the CPC’s purchases of crude and refined products over the last six months. It suggests that one firm be permanently blacklisted for causing damages to the CPC and the Sri Lankan government amid the current economic crisis. According to the corporation, the unofficial agent has also been asked to confidential CPC meetings, whereas no other supplier has been invited.
According to the investigation, while shipments from other suppliers were waiting outside the port to discharge their goods, this particular company’s ships came after the others had been paid in full and allowed to discharge their cargo and leave.
In addition, the business was awarded exclusive rights to sell Jet A1 gasoline to Sri Lanka, with no other supplier permitted to quote or bring Jet A1. This scenario has now changed, thanks to the CPC’s success in obtaining a second supplier for Jet A1 fuel.
Meanwhile, Power and Energy Minister Kanchana Wijesekara declared on Friday (7) that the Sapugaskanda Oil Refinery would be shuttered from Friday due to a lack of foreign currency to purchase crude oil. “However, there would be no scarcity of refined products because the CPC has sufficient supplies of all items and the CBSL (Central Bank) has made weekly FX needs for refined products,” he said.
The minister also stated that the decision to close the refinery was prompted by a lack of foreign cash for the payment of two Ural crude cargos previously used at the facility. The 100,000 Metric Tonne ESPO crude oil cargo voyage in Sri Lankan waters for the previous ten days would be emptied as soon as appropriate foreign exchange was available to the CPC, he announced on Twitter.