IOC Renews Agreement with Sri Lankan Government
Lanka IOC, an Indian Oil Corporation local subsidiary, has been granted a new 20-year petroleum products licence by the Sri Lankan government. The first 2003 permit was set to expire in January 2024. This will let Lanka IOC to carry on with its retail business until January 22, 2044, on the indebted island nation.
Aseem Bhargav, the Chief Financial Officer of LIOC, President Ranil Wickremesinghe gave the licence renewal letter to Dipak Das, the Managing Director, late last week. The petroleum products licence that Lanka IOC, the Indian Oil Corporation's local affiliate, was awarded has been extended by the government for a further twenty years.
"The licence enables LIOC to import, export, store, transport, distribute, sell and supply petrol diesel, heavy diesel, furnace oil, kerosene, Naphtha and other mineral petroleum including premium petrol and premium diesel". In Sri Lanka, the LIOC accounts for about 20% of the market share in the motor fuel sector.
With no foreign exchange to import petroleum products during Sri Lanka's economic crisis, the LIOC operation became vital for the energy industry. It runs more than 200 retail locations around the island nation. The energy sector was liberalised after Sri Lanka was hit by the economic crisis. The third company to enter the retail fuel market was Sinopec of China in August. RM Parks of the USA and United Petroleum of Australia are also expected to launch soon.