More pressure on CPC as global spikes compel Lanka IOC to hike prices again

LIOC has increased its retail selling prices for Diesel by Rs. 15 per litre and Petrol by Rs. 20 with immediate effect, citing global spikes.

Yesterday’s upward hike was the second time in a row after its first revision for this year announced on 6 February, where it increased the retail selling prices for Diesel (Lanka Auto Diesel) by Rs. 3 per litre and Petrol (LP 92) by Rs. 7 per litre. In 2021, the last price revision was on 21 December. The latest move puts added pressure on state-owned CPC to hike prices twice as it trails LIOC and suffers more losses. 

Noting that the global oil prices are consistently on a steep rising trend, the LIOC said that the Brent crude oil prices are now over $ 100/barrel having an increase of more than 35% during last one and half months. The unprecedented surge in international oil prices has already breached the seven-years highs.

“Prevailing situation after Russia's attack on Ukraine exacerbated concerns about disruptions to global energy supply coupled with supply shortage by Organisation of Petroleum Exporting Countries (OPEC) and their allies, are driving oil prices which are expected to rise further with bullish market sentiments,” LIOC said.

LIOC Managing Director Manoj Gupta said: “Presently, the losses are very high as per current international prices and we are consistently requesting to the Government for increase in fuel prices. However, the decision has not been taken yet. Considering the same, we are compelled to increase the prices of Petrol and Diesel. However, even after this price increase, there would still be heavy losses at the prevailing international prices.”

“Under the pandemic situation, country is also facing severe foreign exchange crisis due to reduction in forex inflow. Exorbitant increase in the global fuel prices is further adversely affecting the foreign exchange reserves of the country leading to difficulties in imports,” LIOC said.

Lanka IOC is the only public limited energy company and accountable to it’s over 10,500 local shareholders. Despite the unprecedented challenging situations, Lanka IOC has always remained committed towards the social improvement through its several initiatives and strong environment conscience.