Sri Lanka: LIOC to Incur Losses
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Monday, 04 January 2010 |
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The Sri Lanka unit of Indian Oil Corporation said it is likely to make
losses on fuel sales due to fuel price control by the Government.
K R Suresh Kumar, managing director of Lanka IOC. said “In the last
eight months we have been making losses on petrol. We have been
continuously losing on diesel (sales). In the previous two months
losses were between 4.0 to 5.0 rupees.”
Suresh Kumar of LIOC said the firm has been making losses on fuel sales because of government price controls.
In September 2009 quarter, LIOC made a loss of 203 million rupees, after making a 110 million profit a year ago.
It made a 856.7 million rupee loss in the June quarter compared with a
profit of 1.0 billion rupees a year earlier, as it was squeezed between
high taxes and government mandated prices. “We hope the government will
take necessary action to rectify the situation,” Suresh Kumar said.
“Oil companies can’t run at continuous losses.”
Current drop of fuel prices are attributed to forthcoming
elections. Same type of price controls and political influence on
fuel prices apply to the Indian market and many other markets around
the developing world.
PetrolWorld 010110
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