The Lanka Indian Oil Corporation has heeded the government’s request to reduce diesel prices to be on par with the Ceylon Petroleum Corporation (CPC). Lanka IOC Managing Director K. Ramakrishnan also told The Sunday Times FT that the price of LIOC petrol would continue to match CPC’s Rs.157 per litre. He added that the company has taken this decision as a responsible Indian venture considering the government’s request although they had to incur a loss.
He said that there was no indication of a warning of a take-over, in the letter sent by Petroleum Minister A.H.M.Fowzie, of all 153 LIOC outlets if the company did not bring its diesel price on par with CPC. Mr. Ramakrishnan disclosed that the decision to bring down the price of diesel was endorsed at the company board meeting in India last week. He said that the operations of lubricant plant and the tank farm at Trincomalee were also discussed at length at the meeting.