Gammanpila reveals massive fuel tax raked in by Treasury

… warns of possible fuel shortage

By Sujeewa Thathsara

The Ministry of Finance collected about Rs. 368 million afrom the Ceylon Petroleum Corporation (CPC) as tax from the sale of fuel on a daily basis, Minister of Energy Udaya Gammanpila said yesterday, addressing the media in Colombo. The Minister added that the CPC made a loss of Rs. 551 million a day.

“There is an increase in the price of fuel in the world market. The CPC is also incurring colossal losses. To mitigate the pressure on the CPC, I asked the Minister of Finance, Basil Rajapaksa, on Friday (18) to remove the taxes on fuel. We have not increased the price of fuel. If the Ministry of Finance removes the tax on fuel, it will be a great relief for the debt burdened Corporation,” he said.

The Ministry of Finance charged Rs. 42 as tax per litre of Octane 92 petrol, Rs. 64 on a litre of Octane 95 petrol, Rs. 17 on a litre of regular diesel and Rs. 39 on a litre of super diesel, Minister Gammanpila said.

“The CPC sells a litre of octane 92 petrol at a loss of Rs. 19, litre of octane 95 petorol at a loss of Rs. 17, litre of regular diesel at a loss of Rs. 52, litre of super diesel at a loss of Rs. 35, and litre of kerosene at a loss of Rs. 63. If we keep selling fuel at this rate, not only will we run out of dollars, but also rupees,” he said, warning that there was the possibility of a fuel shortage due to the rupee crisis the CPC was facing.

In 2021, CPC incurred a loss of Rs. 83 billion.