Petroleum prices to come down?
Lumbini EDIRISINGHE
|
Will the price come down seems to be the question on this
consumer’s mind
|
Sri Lankan petroleum prices are expected to come down from December
with the slashing of global oil prices, CEO, Lankan Indian Oil Company (LIOC),
K. Ramakrishna hinted.
Speaking to the Daily News Business he said IOC have already
purchased 25,000 metric tons of petrol at Rs. 230 million, which was
more than the existing price of a crude oil barrel, which the company
incurred losses owning to that.
“We have to wait until these existing stocks are ‘sold’ out,” he
said.
He said Lanka IOC would take a review for a price slash in December
and they are observing the situation.
Normally they go for global tenders and most of the time they
purchase crude oil from Reliance Company in India. Oil prices tumbled to
below $111 a barrel Monday as weather forecasters said Hurricane Gustav
was weakening as it advanced towards Louisiana.
A stronger dollar also helped reverse the course for oil prices,
which had risen by nearly $3 to over $118 barrel earlier in the session.
Last Friday, the contract fell 13 cents to settle at $115.46, a
barrel.
The global oil prices are expected to remain lower for sometime. They
are purchasing at current oil prices.
Ramakrishna said when they repurchase oil stocks it would be at a
lower prices.
“IOC will then give this benefit to the customers,” he said.
The second player in the market Petroleum Corporation too had stated
that local oil prices will come down soon as they too have to wait until
the old stocks were sold out. |
