LIOC seeks revision of diesel prices

Lankan Indian Oil Corporation (LIOC) has asked the government to revise diesel prices to protect the company against incurring a loss of nearly US$ 5 million in December due to high global crude oil prices.

"We supply 30 million litres of diesel in Sri Lanka every month, and will lose Rs 18 (Sri Lankan Rupees) per litre from next month if the government does not revise the prices upwards," LIOC Managing Director, K Ramakrishnan, said.

It is estimated that the LIOC has incurred a loss of Rs 80 million during November and this could push up its aggregate loss to Rs 620 million (over US$ 5.5 million) during these two months alone.

LIOC, a subsidiary of Indian Oil Corporation Ltd., in Sri Lanka, is the only public sector oil company other than the state-owned Ceylon Petroleum Corporation (CPC) that operates retail outlets in the Island Nation.

It has been incorporated to carry out retail marketing of petroleum products and bulk supply to industrial consumers etc., thereby providing energy security and supply stability to Sri Lanka.

"We are thankful to the Sri Lankan government for undertaking timely increase in retail oil prices in line with the rising global crude oil prices," Ramakrishnan said, adding, other wise the company would have suffered surmounting losses during 2007.

"Although we did not receive any subsidies this year, we were able to achieve a profit," Ramakrishnan said. The LIOC is also targeting to increase its market share in lubricant products to 20 per cent from the current 13 per cent to earn an additional profit of Rs 300 million.

It also expects to add another 100 retail outlets before the end of 2009 at an investment of Rs 2 billion and is awaiting government's approval.

The Hindu