Lanka IOC concerned over reported oil tanks' takeover plans

IOC Lanka on Tuesday expressed concern over media reports suggesting the island nation's government was planning a takeover of its oil storage tanks in the north-eastern port district of Trincomalee.

When asked for his comments, Lanka IOC Managing Director Subodh Dakwale said, while there was no official intimation yet, he was concerned and disturbed by the reports. “What would you feel if someone says they are trying to take away my sofas and other furniture from the house?” Dakwale asked reporters.

IOC Lanka took over 100 petrol/diesel stations owned by Ceylon Petroleum Corporation in February 2003 and commenced retailing products to customers.

Earlier this week, Sri Lanka had rejected a shipload of 5,000 tonnes of diesel from IndianOil, saying the fuel was of poor quality.Dakwale said the company had initiated an inquiry and was not selling the diesel that did not meet Sri Lanka's requirements for colour and appearance.

He also said Lanka IOC was losing at least Rs 5 on every litre of diesel it sold in the local market, but still managed to make profits on account of sales of bitumen and lubricants.