Oil Sales

May 20, 2010 (LBO) – Lanka IOC, the Sri Lanka unit of Indian Oil Corporation said it lost 422 million rupees in the year to March 2010 down from 1,237 million a year earlier and had boosted bunkering sales to 15 percent of its total revenues.

Lubricant sales had risen to 5.6 million litres from 4.8 million a year earlier. It had started bitumen sales, achieving a volume of 2.27 million litres. Lanka OIC sells petrol and diesel at effectively government mandated prices by riding on the pricing of state-run Ceylon Petroleum Corporation and also pays high import duties and excise taxes on refined products imported to the country.

The firms audited accounts filed with the Colombo Stock Exchange showed that losses were cut with the help of 581 million rupee value added tax write back allowed by revenue authorities.

Lanka IOC said its sales of bunkers or ship fuel had risen to 149 million litres from just 21 million litres a year earlier. The firm’s aggressive pricing had raised protest of other Colombo based suppliers, but it had defended its pricing.

Revenue from bunkers had grown to 7.7 billion rupees (15.3 percent of total) from 977 million a year earlier as total revenue rose 5.4 percent to 50.2 billion rupees.

The fir