Asia/Pacific News
Lanka IOC Requests Tax Concessions for Bunker Business
Sri Lanka's Lanka Indian Oil Corp. (Lanka IOC) is seeking either a bond facility or tax concessions from the government for its bunkering business at the Trincomalee oil terminal, local media reports.
The company, which is a subsidiary of India's state-owned Indian Oil Corp. said that it is facing stiff competition from Indian operators, who have undercut prices through their own domestic production.
“The transport cost of bunker oil from Colombo to Trincomalee is very high and the company can not service ships passing Trincomalee harbour charging a competitive rate" said Lanka IOC Managing Director Subodh Dakwale.
The company said that it is aiming to break into the bunker market in the Bay of Bengal, and would be following up with a formal written request for tax concessions.
The company had previously announced that it was targeting to sell between 10,000 and 12,000 metric tonnes of fuel oil and marine gas oil by the end of 2015.
It was reported that the company started operations in Trincomalee in July earlier this year.
Last month Ship & Bunker reported that Colombo had seen an increase in vessel traffic thanks in part to the arrival of two new main shipping lines.
