LIOC hikes diesel price by Rs 2


The Lanka Indian Oil Company yesterday increased its diesel price by Rs. 2 per litre. The company claimed the hike was a measure to mitigate part of the soaring losses it had been incurring over a period of time.

"We have merely increased the price of diesel from the earlier Rs. 115 per litre to the present Rs. 117, as it was inevitable in terms of the mounting losses, of nearly Rs. 13 per litre, new Managing Director/CEO of LIOC in Colombo Subodh Dakwale told The Island last night.

"We are a listed corporate and we are accountable to our stakeholders. We are losing Rs. 156 million a month from the 12,000 kilo litres (12 million litres) we are selling in the local market and this will only mitigate the monthly losses to a slight degree by around Rs. 24 million. The increase was inevitable," he said.

Responding to a question as to whether he sees the crashing of the LIOC diesel market, where the Ceylon Petroleum Corporation prices were Rs. 2 cheaper, he said that LIOC had 12 per cent of the local market and the increase would not matter. "We are providing a very good service to the customers," he said.

He also said that the company had already informed the government about the increase, but there was no reaction from the government as at last night.

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