The shares of Lankan Indian Oil Corporation (LIOC) rose in an otherwise subdued Colombo Stock Exchange today as the company welcomed the government's decision to raise prices of petroleum products.
K Ramakrishnan, managing director, LIOC, welcomed the hike in petroleum prices. The Sri Lankan government on Monday raised the prices of petrol and diesel by SLR10 per litre and SLR5 per litre, respectively.
"We have surrendered about $25 million subsidy to the Sri Lankan authorities of the total $100 million that was due to LIOC and have got the rest in a settlement," Ramakrishan told PTI, adding the hike in prices would improve the finances of the Indian Oil subsidiary.
Ramakrishnan said the decision to raise prices would cushion the losses in the sector as LIOC was losing about SLR 18 per litre on diesel prior to the hike. It was earning SLR5 per litre in petrol, he added.
"The increase in prices will not only help us overcome our deficit but will also give a boost to the growth of LIOC," he said.
Petrol will now be sold at SLR127 ($1.1) per litre and diesel at SLR80 ($0.73) per litre.
Lankan IOC welcomes govt move to hike prices
Press Trust of India / Colombo Jan 15, 2008, 13:59 IST
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