Sept 28, 2008 (LBO) – The Sri Lanka unit of Indian Oil Corporation has temporarily cut prices on its lubricants, aiming to capture a bigger share of the market in which competition is growing.
Lanka Indian Oil Corp is also offering its big tank farm in the eastern port of Trincomalee to store liquid cargo for other companies.
Lanka IOC managing director K Ramakrishnan said the firm is offering a five percent discount on lubricants till end-October.
The move comes as crude oil prices have fallen off historic highs and competition is growing in the local market.
“We have a lube oil blending plant in Tincomalee so we can afford to sell at cost,” Ramakrishnan said.
Before the plant was commissioned last November, LIOC was importing lubricants from India and selling in the local market, dominated by Chevron Lubricants Lanka, formerly known as Caltex Lubricants Lanka.
In June 2008, the Sri Lanka unit of Chevron Lubricants, a former government monopoly which still dominates the market, raised prices sharply in response to rising crude prices.