Sri Lanka's IOC unit keeps economy oiled
Apr 24, 2017 19:40 PM GMT+0530 | 2 Comment(s)
ECONOMYNEXT - Lanka IOC, a unit of the Indian Oil Corporation, is maintaining deliveries to its network of fuel stations, a top official said as pumps ran dry in distributors of state-run Ceylon Petroleum Corporation amid a strike.
Lanka IOC owns and operates about a third of the retail fuel market in the country, after the monopoly of CPC was broken in a privatization drive, vastly improving the quality of fuel and fuel stations.
A common user facility Ceylon Petroleum Storage Terminals, which Lanka IOC operates in Colombo, has also been hit by strike action.
An LIOC official said the firm was transporting fuel from a tank farm in Trincomalee in the north-east of the country.
Unions are opposing a joint development of remaining tanks in Trincomalee port, which they say is further privatization of state assets.
A strike leader claimed that reduced fuel distribution would boost the economy.
Strike leaders who have links to the Sri Lanka Freedom Party and the Janatha Vimukthi Peramuna have opposed privatization, and wanted them kept under the control of the elected ruling class to ensure that SOEs like Ceylon Petroleum Corporation is overstaffed and rife in procurement corruption. (Colombo/Apr24/2017)