|
The Lankan Indian Oil Corp (LIOC), a subsidiary of India's state-run
oil company, has raised diesel prices by Rs 20 (Sri Lankan currency) to
Rs 100 a litre in view of the international crude oil prices touching a
record of 130 dollars a barrel.
"We are losing Rs 43 (Sri Lankan currency) a litre on diesel and
despite the increase of Rs 20 we will still have a loss," the Managing
Director of LIOC K Ramakrishnan told local media, adding LIOC was also
incurring a loss of Rs 3 a litre on sale of petrol.
With the International crude oil prices touching the 130
dollars a barrel mark, the LIOC decided to raise diesel
prices by Rs 20 (Sri Lankan currency) to Rs 100 a litre.
Since LIOC is listed as a private company in Sri Lanka, it
can undertake price correction if the situation warranted without
getting any clearance, he said.
Accordingly, its auto diesel fuel will cost Rs 100 per litre
(up from Rs 80) and the price of petrol will remain unchanged at Rs 127
per litre.
Meanwhile, its rival Ceylon Petroleum Corporation refrained from such a move.
LIOC supplies 30 million litres of diesel every month in the island country.
Petroleum prices were last raised in the island country in January this year.
Ramakrishan admitted there could be some adverse impact on
the LIOCs sale of diesel in the beginning following the unilateral rise
in its prices.
Meanwhile, Ramakrishnan said despite the losses, the LIOC
would be able to manage its finances following the rise in diesel
prices. In the nine months ending December 2007, the LIOC made a net
profit of 1,450 million rupees compared with a loss of 1,516 million in
the year before period.
Turnover rose to 32.3 billion rupees from 23.8 billion rupees during the period.
Lanka IOC Limited (LIOC), is the only oil company other than
the state-owned Ceylon Petroleum Corporation (CPC) that operates retail
petrol stations in Sri Lanka.
It has been incorporated to carry out retail marketing of
petroleum products, bulk supply to industrial consumers, building and
operating storage facilities at the Trincomalee Tank farm.
India's IOC holds 75 per cent of equity in LIOC and began its operation in the country in 2003.
Sri Lankan President Mahinda Rajapaksa is reported to have
held discussions at the cabinet meeting last evening on the issue of
losses incurred by the state-owned CPC due to rise in global oil
prices.
PetrolWorld 240508
|
