CPC profit figures show the impact of Treasury fuel subsidy
Figures reported on November 11 show the Ceylon Petroleum Corporation recorded Rs 29.2 billion in net profit in the first half of 2026, up 71.8% from Rs 17 billion in the corresponding period of 2025, according to the Finance Ministry.
Gross profit fell 72.9%, from Rs 32.8 billion to Rs 8.9 billion, while operating profit increased from Rs 11.1 billion to Rs 23.9 billion.
The ministry attributed the improvement in operating profitability mainly to the Rs 41 billion Treasury subsidy received between April and June. The net-profit increase should therefore be read alongside the subsidy rather than treated as a stand-alone improvement in trading performance.
Earlier report (2026-11-09)
Ilankai Tamil Arasu Kachchi MP Shanakiyan Rasamanickam has questioned in Parliament whether the Treasury's Rs 41 billion fuel subsidy actually reached consumers, pointing out that the Ceylon Petroleum Corporation recorded a net profit of Rs 29.2 billion over the same period.
He asked whether the full benefit of the April-June 2026 allocation reached consumers as a fuel price reduction, and whether the state fuel enterprise's purpose is to make profits or to supply affordable fuel. He challenged Deputy Minister Kaushalya Ariyarathne's claim that fuel is being sold below import cost, citing figures of Rs 307 per litre for imported diesel and Rs 322 for petrol, and called for a comparison with retail prices and the pricing formula.
The Finance Ministry's mid-year fiscal report shows the Treasury held a cash balance of Rs 690.3 billion at the end of June 2026, he noted, asking why additional taxes are levied on fuel when such a balance exists. He also sought details of the total subsidy allocated since January, its split between the CPC and private distributors, and whether the Rs 70 diesel subsidy will continue beyond December 31, 2026. A further Rs 41 billion subsidy for October-December has already been approved.
Inflation stood at 8.3 per cent in October, with food inflation at 8.8 per cent, he said, warning that a diesel price increase would raise production costs in the coming Maha cultivation season. Targeted relief for farmers, fishermen and public transport operators would reach households and productive sectors faster than a general subsidy, he said, urging the government to disclose how the subsidy money was spent and whether it reached consumers.
