Fri, 29 Mar 2024 Today's Paper

Lanka IOC raises premium product retail prices after diesel tax increase

By

2 December 2016 12:03 am - 0     - {{hitsCtrl.values.hits}}

A A A

REUTERS: Sri Lankan fuel retailer Lanka IOC put up prices for its premium brands yesterday, three months after the government increased the duty on oil products, and said it will have to raise other petrol prices if the government fails to hike official prices.


The move by Lanka IOC Plc, one of two fuel retailers along with state-owned Ceylon Petroleum Corp (CPC), will put pressure on the government to raise pump prices, which are normally set in talks between the government and retailers.

Under pressure from the International Monetary Fund to boost revenue, Sri Lanka’s finance ministry increased the excise duty on diesel by Rs.10 to Rs.13 per litre from Aug. 20, stipulating that fuel retailers could not pass on the cost to consumers.
Lanka IOC Plc, a subsidiary of Indian Oil Corp, said in September that the government’s decision was likely to hit its 2016/17 second-half earnings.
“We increased only the prices of premium brands,” Lanka IOC’s managing director Shyam Bohra told Reuters on Thursday on the phone from India.
“The government didn’t increase the retail prices but increased the taxes. We cannot sustain as we are making losses and there should be a pricing formula.”
Lanka IOC increased the prices of premium brands of Xtra premium Euro 3 by Rs.2 to Rs.123 a litre and Xtra mile by Rs.2 to Rs.99 a litre, but kept the prices of other products in line with Ceylon Petroleum Corp (CPC).
Bohra said his company was incurring a loss of Rs.17 per litre of petrol and two rupees per litre of diesel as of Wednesday, and would be forced to raise prices if the government did not act itself.
Lanka IOC had previously been cushioned against losses in petrol since December 2014 by the profit margin offered by diesel sales, he said.
Petroleum Minister Chandima Weerakkody said in August that CPC would also incur a loss of about 2 billion rupees a month after the increase in 
diesel duty.
Shares in Lanka IOC were trading up 0.5 percent at 34.50 rupees at 0533 GMT on Thursday in early trade.

 


Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

  Comments - 0

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment





Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

VAT increase: SOUNDs death knell for publishers, readers

Though the Government imposed VAT (Value Added Tax) on vegetables and other e

How female change-makers are driving Sri Lanka’s energy saving platform

Saving energy has become more of a responsibility than a habit in today’s c

A dull Ramadan awaits Muslims amidst the Soaring Cost of Living

In the coming days, Muslims across the world will welcome the Holy Month of R

New wildlife underpass to curtail HEC

As of February 2024, Sri Lanka lost another 38 elephants as a result of the H