Good planning will minimise waste, reduce loss - CPC Chairman
by Lalin Fernandopulle
|
Asantha de Mel
|
A proper data processing and accounting system with good planning
will help the Ceylon Petroleum Corporation (CPC) to minimise waste and
reduce the loss which runs into billions of rupees daily, said CPC
Chairman, Asantha de Mel.
He was speaking at a ceremony to launch the Systems Application
Products (SAP) for data processing as the Enterprise Resource Planning (ERP)
system which will be implemented by the Indian Oil Corporation Ltd.
The Indian Oil Corporation (IoC) was appointed to implement the SAP
solution for Ceylon Petroleum Storage Terminals Ltd., (CPSTL), CPC and
Lanka IOC PLC.
De Mel said the CPC incurs an annual loss of around Rs. 3
billion.With the implementation of an efficient management and
accounting system the loss could be reduced to a great extent.
"Though world crude oil prices were escalating the CPC did not revise
its fuel prices for six months in keeping with a pledge made by
President Mahinda Rajapaksa not to increase prices until the end of the
year", he said.
The CPC incurred a loss of Rs. 3.2 billion prior to the recent fuel
price revision. A litre of petrol was increased by Rs. 10, diesel by Rs.
5 and Kerosene by Rs.2. The CPC revised its fuel prices in July last
year.
The Chairman said the CPC which sells around 140 million litres of
diesel and 40 million litres of petrol per month incurs a loss of Rs. 20
on diesel and breaks even on petrol. With the modernisation of its
refineries and pipelines the online information system will help the CPC
to improve its efficiency", he said.
The Indian oil was selected to implement the project since it is the
largest commercial enterprise in India and has the expertise as the
major implementor of the SAP solution in South East Asia connecting 681
locations and over 8,000 users.
Lanka IOC, Managing Director K. Ramakrishnan said the SAP solution
will revolutionise the oil sector in Sri Lanka with a huge saving on
cost.
"The project will help in better management, inventory control,
optimise resources and make timely decisions," Ramakrishnan said.
The project which is estimated to cost Rs. 350 million will be
completed within a year.
[email protected] |
