Indian Oil Corp (IOC) has agreed to supply gas oil, gasoline and jet fuel to Sri Lanka amidst the deteriorating economic crisis.
Due to a lack of funds, Sri Lankans are currently facing up to seven hours of unexpected power cuts and lengthy queues for over-priced fuel.
Currently, Sri Lanka needs $500 million a month to adequately source fuel, however Sri Lanka’s central bank has stopped funding for fuel shipments. IOC has agreed to extend a $500 million line of credit offered by the Indian government to assist with the growing fuel and diesel issue.
Reportedly, IOC will supply Sri Lanka with 12-13 parcels of fuel over the next 4-5 months. IndianOil’s subsidiary in Sri Lanka, the eighth largest company with 202 petrol and diesel stations, is the only private oil company that runs retail petrol and diesel stations in Sri Lanka.
Indian Oil continues to aid Sri Lanka in the hopes of “being a good strategic partner to Sri Lanka” and “becoming a transnational energy major”.
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