Lanka IOC sees industry growth
Demand for petroleum products :
The petroleum industry is performing reasonably well due to the
stable economic and political environment. It has recorded a 10 percent
growth in keeping with the country’s economic growth. “The industry
growth is excellent and encouraging. We expect the growth momentum to
sustain and continue as the country’s rapid development activities are
progressing islandwide at present.
K R Suresh
The petroleum industry will benefit from wide travelling especially
from domestic travellers,” Lanka Indian Oil Company PLC (Lanka IOC)
Managing Director K R Suresh Kumar told Daily News Business.
The company recorded marginal profits for the first half of this year
and is expecting a better third quarter performance. “It is important
that the current growth scenario continues. “We will provide value
addition for our customers and measures will be taken to add more
services to Lanka IOC’s 153 petroleum outlets. We are looking at setting
up supermarkets and introducing state-of-the -art technology at the
service facilities. We plan to seek local joint venture partners for
these additional facilities,” he said.
The number of retail petrol sheds will be expanded in the near future
covering areas that the Lanka IOC is not present at the moment.
As the company outlets are well-received by customers the expansion
will derive more business.
The company will introduce additional services providing value
addition for its customers in the coming months.
There will be five new branded service stations within the next two
months. It also launched extra premium 95 high quality petroleum product
targeting the high-end car owners which is eco-friendly. This product
will be available in 20 petrol sheds by next month.
“We foresee more demand for petroleum products in the coming years.
We also see a reasonable growth in the lubricant business. We will add
more countries to our lubricant export market,” he said.
The Lanka IOC is actively supporting the Government’s road
development activities It imports bitumen necessary for road repairs
from the Middle East. This has a good demand and a growing business. The
company is also looking at the bunkering business and plans to provide
services at the Hambantota port when the need arises. This function is
already operates in Colombo port.
“The petroleum industry has the Government’s support and there are
positive moves taken to develop the industry. The action is needed to
make operations viable and it is necessary to review prices constantly.
The industry could be a key sector in development,” Kumar said. Lanka
IOC owns 103 petrol sheds and the rest are operated on a franchise