LIOC seeks excise duty reduction for petrol

Sanjeevi JAYASURIYA

There is a rapid development in the country’s transport sector and fuel plays a predominant role in its growth sustainability.

“We see an accelerated development in the transport sector where fuel prices has a direct impact on the sectorial growth. There is continuous increase in the international fuel prices. The price of both petrol and diesel are on the rise and this will hamper transport sector development,” Lanka Indian Oil Company PLC (Lanka IOC) Managing Director K.R. Suresh Kumar told Daily News Business.

“The petroleum industry is performing reasonably well due to the stable economic and political environment.

However, the rise in the prices needs to be compensated,” he said.

Lanka IOC is expecting a duty reduction with regard to petrol while the company is confident that it could manage with the current diesel price. “The reduction in excise duties related to petrol will enable the company to supply diesel at the prevailing prices. However, it is important that a concession on petrol is given,” he said. Petrol is consumed more compared to diesel.

“The increase in the prices is not a solution to recover cost. But the duties should be brought down to reach a manageable level.

“This will create a win-win situation for both the consumer and the company. “It will also not have an inflationary impact,” he said.