Oil Trend

May 31, 2011 (LBO) - Lanka IOC, the Sri Lanka unit of Indian Oil Corporation lost 111 million rupees in the March 2011 quarter, on revenues of 16.

2 billion rupees, an analysis of audited accounts released to the Colombo stock exchange shows.

Lanka IOC raised its diesel prices nine rupees above the competitor, state-run Ceylon Petroleum Corporation.

The move reduced diesel sales volumes by 50 to 60 percent, Kumar said.

Its lubricant and bunkering business did well in the March quarter.

But volumes are expected to fall in the June quarter. Rough seas reduced sales during the period every year, Kumar said.

The firm made profits of 876 million rupees for the full year ending March 2011, against a loss of 422 million rupees a year earlier.

Lanka IOC had notched up 987 million rupees of profits up to the third quarter ending December 2010 according to results published earlier.

Sri Lanka raised fuel prices in April after the end of the March quarter.

But managing director Suresh Kumar said the firm was losing about 30 rupees per litre on diesel while petrol was being sold at break-even levels.

Sri Lanka keeps diesel prices lower than petrol, despite the energy content on diesel being higher and fuel retailer make los