Decision Of LIOC (Lanka Indian Oil Corporation)
The Sri Lankan subsidiary of Indian Oil Corporation, LIOC hikes the retail prices of petrol and diesel. Prices are effective from last Friday due to the depreciation in the value of Srilankan currency. The Srilankan Rupee in the past seven days has been depreciated by Rs.57 against USD. This is the third time in this month that the oil company has increased the fuel prices.
As per LIOC the retail prices of petrol and diesel are hiked by Rs.75 per litre & Rs.50 per litre. With this increase the fuel prices touched the new high of Rs.254 per litre for petrol and Rs.214 per litre for diesel. This surprising decision of LIOC has come amidst the worst economic crisis that the country is going through.
Depreciation of Srilankan Rupee
Sirlankan rupee has depreciated second time in the last seven days, and this time by Rs.57 against USD. With this change in prices the products related to oil and gasoline are probably going to be more expensive.
As per the managing director of LIOC, fuel prices are also surging because of the response of western countries to Moscow’s invasion, to isolate Russia. The motive is to cut off Russia from the global markets.
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Need To Increase Prices Of Petrol And Diesel
No Subsidiary was granted from the Srilankan Government to LIOC, and the losses were increasing. Losses are notable on the basis of actual landing cost of the product after including applicable charges, duties and taxes.
Mr. Gupta added that considering too many losses and international prices, there were no options other than to hike the fuel prices. But still even after the hiked prices, there will be heavy losses due to the influence of international prices
Due to the major economic crisis in Sri Lanka, the Indian government has given billion dollar financial assistance this year in January.