LIOC fuel price hike covers losses

By Bandula Sirimanna

Lanka IOC says its recent price hike of diesel prices by Rs 20 rupees, the second increase in a week, will enable the company to cover the monthly losses amounting Rs. 675 million. Managing Director of the LIOC K.Ramakrishnan said that they have brought the price increase on petrol and diesel on par with the CPC price.

However, he said the Sri Lankan government’s decision to impose import duty of Rs 1.50 a litre on petrol and Rs 24 a litre on diesel will have an impact on the company’s local operations.

Referring to reports in the Indian media about Indian Oil Corporation (IOC) ‘s plan to sell part of its investments in state-owned ONGC and Gail India to raise funds and tide over a liquidity crunch, Mr Ramakrishnan said that it will not affect LIOC’s operations as it is listed as a private company in Sri Lanka.

On the other hand he said that his company has made a long term investment in Sri Lanka and they will expand their petroleum distribution network in the near future.