Lanka IOC jacks up diesel by Rs. 75 per litre, petrol by Rs. 50 citing sharp devaluation

Lanka IOC has jacked up fuel prices again - Diesel by Rs. 75 per litre and Petrol by Rs. 50 per litre citing the sharp devaluation of the currency this week.

LIOC Managing Director Manoj Gupta said: “Rupee depreciation twice in a span of seven days by Rs. 57 against USD has directly impacted the landed cost of Gasoil and Gasoline making them dearer by an equivalent amount per litre. 

Oil and gas prices are also surging as western countries respond to Moscow’s invasion with numerous sanctions to isolate Russia and cut it off from global oil markets.”

“Our current losses are exorbitantly high considering current international prices leaving no other option but to increase the prices of Gasoil and Gasoline. However, it is a painful reality that even after this price increase, there would still be heavy losses at the prevailing international prices,” he added.

LIOC said yesterday even after the sharp upward revision in exchange rates by over 28% (from Rs. 203 to Rs. 230 on Tuesday and to Rs. 260 by yesterday), the inflow of US dollar has not improved much in the banking channels during the past two days. The banks are, however, offering USD at the rate of Rs. 260 and even much beyond.

“Though the current global political and economic environment is extremely challenging compelling us to resort to desperate measures, I am confident that the situation will improve and we shall be able to pass on the benefits of reduced prices to our valuable customers,” Gupta said.

This is the second hike in a month. Citing spikes in international markets, LIOC hiked prices on 7 February with Diesel by Rs. 3 per litre and petrol by Rs. 7 per litre.

He said LIOC does not receive any subsidy from the Government of Sri Lanka and its losses are calculated based on actual landed cost of the product after considering payment of applicable duties, taxes and other statutory levies including handling charges.

LIOC also said oil has also been rising sharply on the prospects for a full embargo on Russian oil and products and reaching near to the highest levels seen earlier in 2008. With fear of supply scarcity amidst the Ukraine-Russia war, crude oil continues to be on the boil, threatening to reach unforeseen levels. It is gathered that the international market is rising to account for the supply disruption to at least part of the nearly 4 million barrels per day of oil that is sold by Russia into the U.S. and EU.

Lanka IOC is the only public limited energy company and accountable to its more than 10,500 local shareholders. Despite the unprecedented challenging situations, Lanka IOC has always remained committed towards the social upliftment through its several initiatives and strong environmental conscience.