Indian Oil to open 50 stations in Sri Lanka to fight fuel shortage
Support from the company comes after the country had to introduce a National Fuel Pass to alleviate drivers' fueling needs exacerbated by its political and economical crisis.
Amidst a fuel shortage crisis triggered by economical and political instability, Sri Lanka has approved the opening of 50 new service stations by Lanka Indian Oil Corporation (LIOC). The new sites are set to assist local driver’s fuelling needs with imports from India, as the company is a subsidiary of Indian Oil Corporation.
LIOC currently owns a 216 station network in the island as the second fuel retailer and will invest approximately $5.5 million to fulfil this expansion, as the firm’s Managing Director, Manoj Gupta, revealed to Reuters. Ceylon Petroleum Corporation (CPC) is currently the major player, operating 1,190 forecourts across the nation.
"We have been trying for some time to get this approval and we are more than willing to come forward and play a larger role to support and work with Sri Lanka to resolve its challenges," Gupta told the news agency.
At the end of July, the country had to implement a National Fuel Pass in order to secure fuel supplies for workers amidst a financial crisis that imploded due to the lack of foreign exchange that has crippled imports of essential goods such as food, medicine and fuel.
LIOC has been amping up supplies to CPC for the last two months after exchange shorter began to affect imports. Deployment of the new service stations comes after the company signed a separate agreement in December to gain control of 75 oil tanks located in a storage facility close to Sri Lanka’s eastern port of Trincomalee.
