Oil Plan

NEW DELHI, Nov 5 (Asia Pulse) – State-owned Indian Oil Corp is eyeing a contract to revamp and expand the
sole refinery in Sri Lanka. IOC’s interest in upgrading and doubling capacity of Ceylon
Petroleum Corp’s (CPC) Sapugaskanda Refinery to 4 million
tonnes a year came up at a meeting between Indian Oil Minister
Murli Deora and his visiting Sri Lankan counterpart, Susil
Premajayantha, here on Wednesday.

The Sri Lankan minister said his government will soon call
for global expressions of interest in the capacity expansion
project, which IOC could also participate in.

Deora also raised the issue of losses suffered by IOC’s Sri
Lankan subsidiary, Lanka IOC, on the sale of fuel below cost at
152 retail outlets in the island nation.

Premajayantha said Sri Lanka was planning to overhaul the
taxation structure on petroleum products in the forthcoming
Budget to be presented in Parliament on November 22 and
indicated that levies on on petrol and diesel may be slashed.

“If we reduce tax, there will be no losses (to Lanka IOC),”
he said after the meeting, which was held on the sidelines of
the Petrotech-2010 oil an