The Ceylon Petroleum Corporation (CPC) will soon re-enter the lucrative bunkering business after a lapse of eight years following the Supreme Court order that nullified the privatization of bunkering, Petroleum Industries Minister Susil Premjayantha said yesterday.
The supply of bunkering facilities which was a CPC monopoly and managed by its subsidiary, Lanka Marine Services (PVT) Ltd, was sold to John Keells by the Ranil Wickremesinghe government in 2002.
Later Minister Vasudeva Nanayakkara filed a public interest petition in the Supreme Court challenging the privatization.
Minister Premajayantha said as an interim measure the bunkering business was being operated by 10 private companies contracted by the CPC. These companies had sold 50,975 metric tons of Marine Gas Oil worth US$38.7 million and 178, 908 Metric Tons of Marine Fuel Oil worth US$178 million.
He said he had instructed Ministry Secretary H.T.M. Jayawardana to study the current situation of the bunkering business and submit a report.
“I do not understand why the bunkering business, which was the most lucrative business of the CPC was privatized in the first place when the CPC is run at a loss. I expect the CPC will be able to bring down its losses to a great extent if it re-enters the bunkering business which is worth nearly Rs. 20 billion annually,” the minister said.
He said the CPC would set up a tank farm at Hambantota to store and supply aviation fuel to aircraft that use the Mattala International Airport
Meanwhile, Mr. Jayawardana said the government had decided to mark the state sector presence in bunkering with taking over the business from the private sector.
He said he would submit the feasibility report in a month as the government was keen to re-enter the bunkering business as early as possible.
“All indications are for the CPC to be in the bunkering business by the first quarter of next year,” Mr.Jayawardene said.
The supply of bunkering facilities which was a CPC monopoly and managed by its subsidiary, Lanka Marine Services (PVT) Ltd, was sold to John Keells by the Ranil Wickremesinghe government in 2002.
Later Minister Vasudeva Nanayakkara filed a public interest petition in the Supreme Court challenging the privatization.
Minister Premajayantha said as an interim measure the bunkering business was being operated by 10 private companies contracted by the CPC. These companies had sold 50,975 metric tons of Marine Gas Oil worth US$38.7 million and 178, 908 Metric Tons of Marine Fuel Oil worth US$178 million.
He said he had instructed Ministry Secretary H.T.M. Jayawardana to study the current situation of the bunkering business and submit a report.
“I do not understand why the bunkering business, which was the most lucrative business of the CPC was privatized in the first place when the CPC is run at a loss. I expect the CPC will be able to bring down its losses to a great extent if it re-enters the bunkering business which is worth nearly Rs. 20 billion annually,” the minister said.
He said the CPC would set up a tank farm at Hambantota to store and supply aviation fuel to aircraft that use the Mattala International Airport
Meanwhile, Mr. Jayawardana said the government had decided to mark the state sector presence in bunkering with taking over the business from the private sector.
He said he would submit the feasibility report in a month as the government was keen to re-enter the bunkering business as early as possible.
“All indications are for the CPC to be in the bunkering business by the first quarter of next year,” Mr.Jayawardene said.