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Losses behind the reason for fuel price hike: LIOC

Lanka Indian Oil Company (LIOC) has increased its Retail Selling prices for both Diesel (Lanka Auto Diesel ) and Petrol (LP 92 ) by Rs 5/Ltr each with effect today 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.

This was made known through a media release from the LIOC today (21).

The LIOC stated that 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, and as to date the international price of Gasoil 500ppm is $ 95.62/barrel and Gasoline92 is $ 99.37/barrel

Furthermore, the LIOC statement mentioned that they have 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 of the LIOC, Mr Manoj Gupta informed that although losses are very high, presently the company has increased the prices to the barest minimum.

Additionally, the statement proceeds to mention 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, the LIOC has revealed that even after this price increase in Diesel and Petrol the 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 take necessary steps to provide relief to the organisation.