Lanka IOC awaits green light to market turbine fuel

Lanka IOC Ltd. is awaiting government approval to market aviation turbine fuel in the country, said Managing Director Lanka IOC Ltd. K. Ramakrishnan.

He said aviation fuel which is an improved version of kerosene oil is not costly and the demand for it will grow when the Weerawila airport commences operations.

Aviation fuel is marketed by the Ceylon Petroleum Corporation. Our entry into the market will create more competition for aviation fuel in the country.

A litre of aviation fuel will cost around Rs. 100.

Ramakrishnan said one of their long term plans is to set up an oil refinery in Trincomalee. We are awaiting approval from the government to commence work on the project. The refinery will be set up on a 50-acre land.

Lanka IOC commenced commercial operations at its lube oil blending plant in Trincomalee on November 21.

The investment on the plant was Rs. 1.4 billion. The company is also awaiting approval to set up 100 petrol sheds with an investment of Rs. 2 billion. The project will be completed within two years", Ramakrishnan said.

He said, "our plan is to market all petroleum products and not be confined only to petrol and diesel. Despite challenging times we made profits this year and have increased our market share."

Lanka IOC had a turnover of Rs. 1.67 billion from April to September this year. The company has a 23 per cent market share on petrol and diesel and a 13 per cent share on lube oil.

LF