Financial Times - LIOC to re-sell petrol

LIOC to re-sell petrol

Meanwhile, the Ceylon Petroleum Corporation (CPC), has sent a letter to the Ministry of Petroleum Resources stating their concerns and laying out eight conditions regarding the LIOC subsidy removal and the liberalisation in the petroleum sector together with the fresh tripartite agreement involving the government, CPC and LIOC.

The Lanka Indian Oil Company (LIOC) will re-sell petrol from this Friday – after suspending sales for a few weeks, while awaiting further clarification from the government on a deal relating to subsidy payments.

“We will get a petrol parcel by July 7 at the Trincomalee storage,” K. Ramakrishnan, Managing Director LIOC told The Sunday Times FT, but didn’t divulge the quantity. “We are getting a ‘normal quantity’,” he said.

He said the LIOC board was ‘very’ happy about the government’s new proposal, but was awaiting more information about the opening up of the petroleum sector. “This will take another month to clear up and we will be ready with our normal operations,” he added.

Ramakrishnan said that up to last month, the subsidy held with the government was Rs.7 billion and it was a large amount without which the company was unable to run.

“The CPC has replied to a letter by the Ministry requesting them to address our concerns and we have laid out eight conditions,” a senior CPC official said.

He said the ministry in the letter has requested approval from the cabinet to sign a new agreement called the ‘settlement agreement’ replacing the earlier ‘share settlement and purchase agreement for 100 filling stations’.

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