LIOC DEALERS BLOW FUMES AS COMMISSION MARGINS ARE SLASHED

Lanka IOC dealers accuse its management of not increasing the dealer commission that was trimmed from March this year despite gaining profits in billions of rupees annually.

- By Nirmala Kannangara

Petroleum dealers of Lanka Indian Oil Company PLC (LIOC) are up in arms against its management for the failure to ‘raise the dealer commission’ that was pruned, despite gaining profits in billions of rupees annually.

Following the new scheme implemented by the Ceylon Petroleum Corporation (CPC) to withdraw the 3% dealer margin, paid over the past several years as and when the retail price was determined, LIOC too followed suit although the other two contenders in the marketRM Parks and SINOPECcontinued to pay their dealers the 3% commission.

CPC implemented the new dealer commission scheme from March 1, 2025, without consulting their dealers. However CPC sent their dealers prior notice regarding their intended plan. But, LIOC failed to consult their dealers before this scheme was introduced.

According to these dealers, not even a WhatsApp message had been sent to them informing them of the decision to slash the dealer margin and pay them a flat rate of Rs. 6.96 per litre in future.

According to these dealers, although LIOC had entered into contracts with them when offering the dealerships, when slashing the 3% without being informed is a violation of their contracts. They maintain that this decision has been taken unilaterally.