Tit for Tat

From left: Dr. Fernando Im, Senior Country Economist for Sri Lanka and the Maldives, The World Bank, Hon. Eran Wickramaratne, State Minister, Ministry of Finance and Mass Media, Dr. W A Wijewardana, Former Deputy Governor of the Central Bank of Sri Lanka, Prof. Indralal de Silva, Former (Chair) of Demography, University of Colombo, Prof. Amala de Silva, Department of Economics, University of Colombo at the panel discussion on "Demographic Change in Sri Lanka" moderated by Dr. Ramani Gunatilaka, International Centre for Ethnic Studies.

Sept 15 (LBO) – Lanka Indian Oil Corp., will drop fuel prices again from Friday to recover a 50 percent loss in volumes due to price wars with Sri Lanka’s state oil corporation.

We will be reducing our prices by one rupee on a litre of petrol and diesel with effect from midnight Friday. It is essential that we regain our normal volumes and bring down our costs per litre, K Ramakrishnan, Managing Director of LIOC, told LBO.

The rupee drop in price now matches fuel sold at Ceylon Petroleum Corporation (Ceypetco) sheds.

A litre of petrol and diesel at both outlets will now sell at 101 rupees a litre, while diesel will sell at 67 rupees a litre. Ceypetco also sells kerosene at 48 rupees a litre.

Ramakrishnan says the company will be able to cover losses at this price, if it is able to regain total volume sales. LIOC dropped prices earlier in September, pricing it a rupee higher than Ceypetco.

Even at this price difference, we still saw a 50 percent drop in volumes. This means the market, even in Colombo, is very price sensitive and we have had to carry out a correction to regain volumes.

Both parties were allowed to set their own prices from