Fuel Reach

June 12, 2009 (LBO) – Lanka IOC, the Sri Lankan unit of Indian Oil Corp, wants to seek clarification on reports the island’s government is to amend its agreement with the fuel retailer, a senior official said. LIOC managing director Suresh Kumar said he was unaware of any plans to change the deal with the government under which the Indian petroleum firm entered the Sri Lankan market.

Kumar also said Lanka IOC is keen on opening retail outlets in the north which has been cleared of Tamil Tiger rebel activity.

LIOC has sought a meeting with Sri Lanka’s petroleum minister A H M Fowzie next week on reports the government is seeking to amend its agreement with the Indian firm, Kumar told our sister news website Vimasuma.com by phone from India.

Fowzie told parliament Thursday the government plans to amend the agreement after opposition parliamentarians said they were concerned about LIOC’s plans to expand its retail network.

Fowzie said the original agreement had conditions that were unfavourable to the CPC and said the government wants a more fair deal.

Kumar said he first heard about the change through news reports and was unaware how the deal is to be changed.

He said LIOC has a lo