Lanka IOC increases fuel prices

Lanka IOC has decided to increase the price of Octane 92 Petrol and Auto Diesel with effect from midnight today (21).

Accordingly, the price of Octane 92 Petrol has been increased Rs. 05 per litre while Auto Diesel has also been increased by Rs. 05 per litre.

LIOC said it has increased its Retail Selling prices for both Diesel (Lanka Auto Diesel) and Petrol (LP 92) by Rs 5/Ltr each due to huge losses on sales of both the products. 

However, the prices of Lanka Super Diesel and LP 95 have been kept unchanged. The losses are around Rs. 40/ltr on sale of Diesel and Rs. 20/ltr on sale of Petrol at the current international prices, the company said issuing a statement today. 

LIOC said the last price revision took place on 12th 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 7-year highs, it said. As on date the international price of Gasoil 500ppm is $ 95.62/barrel and Gasoline92 is $ 99.37/barrel.

LIOC said it has been left with no other option but to increase the prices of Petrol and Diesel as the quantum of losses have become unbearable. They also informed that they have increased the prices to the minimum, taking into consideration of its impact on the industry and people at large. 

Managing Director LIOC, Mr Manoj Gupta informed that although losses are very high, presently the company has increased the prices to the barest minimum.

Lanka IOC is only public limited energy company and accountable to its more than 10,500 local shareholders. Such continuous losses on indefinite period shall have a very detrimental effect on the financials of the company and its ability to invest to provide value added services to its customers, the company said.

It said that the Selling price of Petrol and Diesel in the country remains significantly low as compared to the prices prevailing in the neighboring countries and that the prices of Petrol and Diesel need to be in line with the prices prevailing in the international market. 

“However, even after this price increase in Diesel and Petrol, LIOC will still have to bear significant losses at prevailing international prices for which they have been requesting to Ministry of Finance and Ministry of Energy to take necessary steps to provide relief to the organization.”