The rumors being spread that Lanka Indian Oil Company (LIOC) is planning to slash its petrol sales in Sri Lanka is baseless and the company would continue supplying petrol to its fuel outlets without any shortages, said LIOC Managing Director Subodh Dakwale.

While speaking to www.adaderanabiz.lk, LIOC Managing Director Subodh Dakwale said that LIOC had sold 18,180 kilo litres of petrol in Sri Lanka during May 2014 and that this has increased to 19,991 kilo litres by May this year.

He added that the company is prepared to sell petrol without any reduction in the future as well.

However, with the new government’s setting the retail price of petrol far below the prices in the world market LIOC has to incur a loss of around Rs. 30 on each litre of petrol sold, he pointed out.

Hence, LIOC currently incurs a monthly loss of Rs. 500 to 600 million on the sale of petrol and it is increasingly difficult to sell petrol with such losses, said Dakwale.

The world market price of a barrel of crude oil was some USD 45 when the incumbent government came to power, whereas it has overtaken the USD 58 per barrel mark now.

Under such a situation, a general election is also looming in Sri Lanka.