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IOC to retail petrol, diesel in Sri Lanka

BS Energy Editor

Indian Oil Corporation will start selling auto fuels in Sri Lanka by taking over 100 retail outlets of Ceylon Petroleum Corporation.

A memorandum of understanding was signed by IOC chairman, M S Ramachandran, and Ceylon Petroleum chairman, Daham Wimalasena, a company statement said.

As per the MoU, Ceylon Petroleum would divest 100 retail outlets in favour of IOC and would assist India's sole representation in Fortune 500 companies to re-assign the franchise outlets.

IOC would modernise and provide additional services through these retail outlets.

"For development and better operating efficiency of petroleum terminals, storage depots including aviation fueling facilities and other infrastructure in Sri Lanka, both IOC and CPC have agreed to operate and use the total existing and future downstream infrastructure on a common user principle basis," the release said.

Moreover, IOC would take over Trincomalee tankages on long-term lease.

The two companies would carve out modalities for facilitating supply of petroleum products to Sri Lanka through IOC.

Sri Lanka is a net importer of petroleum products with a demand of 3.4 million tonne per annum as against its refining capacity of about 2.2 million tonne per annum.

"The excess refining capacity in India would be used to fill the existing gap between demand and supply in Sri Lanka through IOC," the release added.

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