Fowzie warns IOC:

Sell petrol or face take over
 

by Jayantha Sri Nissanka

Minister of Transport and Petroleum Development A. H. M. Fowzie has decided to take over all fuel retail outlets of the Lanka Indian Oil Company within 30 days, unless they resume selling petrol.

"I have given them an ultimatum of 30 days to import petrol and sell at their outlets. If they fail to comply with my order I'll be compelled to acquire all IOC outlets", Minister Fowzie told the Sunday Observer yesterday. The IOC operates 162 filling stations countrywide and claims to have a 32 per cent market share in the retail fuel business and 16 per cent in the lubricant market.

The Minister said he was forced to take such a decision in the interest of the consumers who have been facing difficulties over the last few weeks.

When asked why the Government had not yet paid Rs. 7.6 billion subsidy due to the IOC, the Minister said already an understanding had been reached with the Company to convert this amount to Treasury Bonds and pay accrued interest.

The Minister also dismissed rumours of another fuel hike stating the Government had promised him a subsidy to keep the present prices static. "According to the world market prices, petrol should be sold at Rs. 104 though we sell at Rs. 93 under a Government subsidy", he said.