CPC profits from drop in oil prices diverted to Treasury | Daily News


 

CPC profits from drop in oil prices diverted to Treasury

To be used for COVID-19 relief measures

The profits earned by the Ceylon Petroleum Corporation (CPC) due to the drop in oil prices in the world market are to be diverted to the Treasury to help both COVID-19 Coronavirus combat efforts and for relief measures to the public.

As a measure to provide the benefit from the reduction of fuel prices in the world market to the public Minister of Power and Energy Mahinda Amaraweera will submit a memorandum to the Cabinet of Ministers this week seeking permission to divert the profit earned by the CPC due to drop in oil prices in the world market to the Treasury to fund coronavirus prevention and relief efforts, a press communiqué issued by the ministry said. The statement said that previous experience shows that the entire public does not get the benefit when retail fuel prices are reduced inline with the drop in world market prices.

“When such measures were taken earlier even the price of a parcel of rice was not reduced” the ministry said.

The ministry further said that the decision to divert the entire profit earned by CPC due to the world oil prices drop had been taken despite CPC running at a loss of Rs.610 billion.

The ministry said the decision had been taken due to the impact of the virus outbreak will have on the national economy and the expenditure the government had to make for prevention and relief efforts.

Navaratne further said the BASL has sought medical advice and according to the experts, the best period to take precautionary measures to prevent the spread of the virus is now.

The BASL Secretary further stated that they compelled to make this request solely for the purpose of preventing the spread of the virus and with the objective of protecting the public and members of the legal profession.

However, the BASL maintained that the final decision in this regard should be taken in consultation with the Chief Justice and the Judicial Service Commission (JSC).

 


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