Sri Lanka’s only private oil company, the Lanka Indian Oil Corporation (LIOC) PLC last week reported a drastic reduction in the profit earned for the quarter ended June 30th 2015. The LIOC recorded a profit after tax of Rs.171 million during the said period this year as opposed to Rs. 1.2 billion during the second quarter of last year, which amounts to approximately 86% of drop in profit.

Speaking to The Nation Gain on the issue, Dakwale stated that the LIOC had been facing losses ever since the Government revised fuel prices through its interim budget in January this year.
“We continue to face a loss of Rs.15 to 20 per litre because of this issue. We have called for a price reduction in accordance to the world price. In this case, the prices are reduced way below the actual amount,” he said.

When asked on the remedial measures planned by the company to address the situation, Dakwale stated that they had conveyed their concerns to the Government on several occasions. “The government is in the process of formulating a pricing formula. We would take our next step once we study the formula,” he said.