Lanka IOC incurring loss of 20 Sri Lankan Rupee a litre in diesel sale

IOC Lanka arm losing market on higher selling price






Lanka IOC, the Sri Lankan subsidiary of state-run IndianOil (IOC), faces the same fate as private sector oil marketers Essar Oil and RIL so far as diesel sale is concerned. Lanka IOC, which competes with Sri Lankan government-owned Ceylon Petroleum Corporation (Ceypetco), has lost 80 per cent of its diesel sale owing to higher selling price.



Between April and August, the Colombo Stock Exchange-listed company’s share in the Sri Lankan diesel market was down from 25 per cent to 5 per cent. “The price of diesel at Lanka IOC outlets is SLRs 85 a litre, higher by SLRs 9 to the outlets of Ceypetco. We have, therefore, lost our sales volumes to Ceypetco. However, at the current price, too, we are incurring a loss of 20 Sri Lankan Rupee a litre,” Suresh Kumar, managing director, Lanka IOC told Business Standard.

(Courtesy: Business Standard, New Delhi, September 01, 2011)