Secretary to the Minister of Power and Energy Dr Suren Batagoda, while confirming that the Cabinet paper would be presented this week by the Minister, told that the new formula would benefit both the consumer and the utility, he said.
According to him, the accumulated and unrecovered losses of the Ceylon Petroleum Corporation over the last ten years, was around Rs. 200 billion.media briefing
Generally, the CPC's annual losses were around 70-80 billion. But now we are somehow managing those losses. So far this year, CPC's loss was only Rs. 4 billion from January till May 2015, he said.
With this proposed formula, consumers would be privy to the breakdown of various cost components such as cost of the product in the international market, freight and insurance costs, government taxes and marketing margins, this source said.
However, Ministry sources also revealed that there was some uncertainty within the government to get the approval of this Cabinet paper soon in the light of both Prime Minister Ranil Wickremesinghe and Minister Ranawaka both denying that there was to be an imminent price increase with the Parliamentary elections round the corner.
We are so close to a parliamentary election and during this transit period the scope of getting approval for this cabinet paper was very much limited, the sources said.