Since January 2017, Lanka IOC has incurred a loss of Rs. 964 million mainly due to losses being suffered by the company on sale of petrol and diesel.
The company had reported a loss of Rs. 652 million for the period Jan-Mar’ 17, Rs. 135 million for the period Apr-Jun’17 and now has reported a loss of Rs. 177 million for the quarter Jul-Sep’17.
The market prices of auto fuels were last revised in January 2015 and since then, prices have not been revised in the country.
The crude oil prices which touched a bottom of US$ 30/bbl, has now arisen to almost US$ 62/bbl but the retail selling prices have remained the same.
Further, during this period, taxes have been further increased but selling prices have not been increased. Above all, oil companies have to bear the burden of exchange loss too due to depreciation of Sri Lankan rupee by almost 18%.
The recent surge in the international prices of petroleum products have further added to the losses being made by the company.
Although, company has performed well in other business segments, but since 80% of its turnover is derived from auto fuels, the loss/gain on petrol and diesel finally decides the profitability of the company.
LIOC has repeatedly requested the concerned authorities to either increase the selling prices of auto fuels or reduce the taxes. For petrol, out of selling price of Rs. 117/Ltr, Rs. 57/Ltr goes towards taxes apart from other levies. Similarly, for diesel, out of selling price of Rs. 95/Ltr, Rs. 30/Ltr goes towards taxes apart from other levies.
LIOC commands a market share of around 16% in auto fuels and balance is with Government controlled entity. As per the sources, based on the prevailing international prices of petroleum products, oil companies in Sri Lanka are losing around Rs. 24/Ltr on petrol and Rs. 16/Ltr on diesel. In view of the significant losses being incurred by oil companies and its impact on Sri Lankan economy, Government of Sri Lanka is contemplating implementation of pricing formula in the country.
www.dailynews.lk
The company had reported a loss of Rs. 652 million for the period Jan-Mar’ 17, Rs. 135 million for the period Apr-Jun’17 and now has reported a loss of Rs. 177 million for the quarter Jul-Sep’17.
The market prices of auto fuels were last revised in January 2015 and since then, prices have not been revised in the country.
The crude oil prices which touched a bottom of US$ 30/bbl, has now arisen to almost US$ 62/bbl but the retail selling prices have remained the same.
Further, during this period, taxes have been further increased but selling prices have not been increased. Above all, oil companies have to bear the burden of exchange loss too due to depreciation of Sri Lankan rupee by almost 18%.
The recent surge in the international prices of petroleum products have further added to the losses being made by the company.
Although, company has performed well in other business segments, but since 80% of its turnover is derived from auto fuels, the loss/gain on petrol and diesel finally decides the profitability of the company.
LIOC has repeatedly requested the concerned authorities to either increase the selling prices of auto fuels or reduce the taxes. For petrol, out of selling price of Rs. 117/Ltr, Rs. 57/Ltr goes towards taxes apart from other levies. Similarly, for diesel, out of selling price of Rs. 95/Ltr, Rs. 30/Ltr goes towards taxes apart from other levies.
LIOC commands a market share of around 16% in auto fuels and balance is with Government controlled entity. As per the sources, based on the prevailing international prices of petroleum products, oil companies in Sri Lanka are losing around Rs. 24/Ltr on petrol and Rs. 16/Ltr on diesel. In view of the significant losses being incurred by oil companies and its impact on Sri Lankan economy, Government of Sri Lanka is contemplating implementation of pricing formula in the country.
www.dailynews.lk
No comments:
Post a Comment