Lanka IOC increases fuel prices

CEYLON TODAY | Published: 2:00 AM Oct 22 2021
News Lanka IOC increases fuel prices

LIOC has increased the Retail Selling prices for both Diesel (Lanka Auto Diesel) & Petrol (LP 92 ) by Rs 5/Ltr with effect from yesterday due to huge losses on sales of both the products.

Issuing a press communiqué LIOC said: The prices of Lanka Super Diesel and LP 95 remain the same. The losses are around Rs 40/ltr on the sale of diesel and Rs 20/ltr on the sale of petrol at the current international prices. 

The last price revision was on 12 June 2021. However, since then the Brent crude oil prices have increased from $72/barrel to $86/barrel in the international market. The recent unprecedented rise in international oil prices has breached the seven-year highs. The international price of gasoline at 500ppm is $ 95.62 per barrel and gasoline 92 is $ 99.37 per barrel.

 LIOC has been left with no other option but to increase the prices of petrol and diesel as the losses have become unbearable. They said price increases were at a minimum taking into consideration its impact on the industry and the public. 

When contacted, Managing Director LIOC, Manoj Gupta said although losses are high, price increases have been made to the barest minimum. Lanka IOC is a public limited energy company and accountable to more than 10,500 local shareholders. 

Such continuous losses have a detrimental effect on the company’s finances and its ability to invest to provide value added services to its customers. The selling price of petrol and diesel in the country remains significantly low as compared to prices prevailing in the neighbouring countries. The price of petrol and diesel need to be in line with prices prevailing in the international market, he said. 

However, even after this price increase LIOC will still have to bear significant losses at prevailing international prices for which they have been requesting the Ministry of Finance and Ministry of Energy to provide relief.  

CEYLON TODAY | Published: 2:00 AM Oct 22 2021

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