Lanka IOC rollbacks Petrol 92 price reduction of Rs.5/litre | Daily News


 

Lanka IOC rollbacks Petrol 92 price reduction of Rs.5/litre

Lanka IOC has decided to rollback the reduction of Rs.5/litre on the price of petrol (LP92), which was made April 6. With this revision, LP92 price is now Rs.142/litre at LIOC sheds, against Rs.137/litre at CPC sheds, the LIOC said in a press release. However, it said that Diesel prices of the LIOC are on par with the CPC.

The statement said, “We appreciate the government’s effort in the various measures taken for the safety and well-being of Sri Lankan people during this COVID-19 pandemic. The collective efforts of all the health workers, tri-forces, and police, under the guidance the President, have helped contain the spread of outbreak.”

“The current pandemic situation has brought in various economic challenges and the government has taken every possible step to revive the economy. Lanka IOC extends its support in rebuilding the economy, and service to the nation by maintaining uninterrupted fuel supplies. The LIOC reduced Petrol 92 price by Rs.5/litre on April 6, even though the procurement cost was high. This was done to match our prices with those of the CPC. LAD (Diesel) prices are being maintained on par with CPC prices for more than a year, since May 14, 2019,” it added.

Considering the sharp reduction in international oil prices between March and April, the Customs duty, including surcharge applicable on import of petroleum products, was increased on March 14 and followed by further revision on April 23.

However, international prices have considerably increased since then by more than 100%. Petrol price on date is at $31.5/barrel in the international market, against $14.6/barrel on April 22. It is expected that with the revival of global economy after lifting curfew and lockdown, that the prices would reach Contango.

The statement said, “While we are absorbing huge under-recoveries on both petrol and diesel as per current international prices, but to at least mitigate the under-recovery to a limited extent, we are compelled to withdraw the price reduction of Rs.5/litre on LP92.

"The LIOC had suffered a loss of Rs.346 million during the January-to-March quarter of Fiscal Year 2019/20. We are optimistic that the current duty structure would be reviewed at the earliest, in view of increases in international prices. ”

 


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