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A one of most difficul task is to link the worl oil price and Financial Performance of LIOC. Thoug the world price droped to a significant law level company still making loss. There last 3 quarters perormace was very dissapointing. Even now also unsatisfactoty situation is continuing but goverment is not redy to incrase the price. From company side with CPC called for a price hike but govenment reply was totally diofferent. CPC Situation is different from LIOC. Thet are backed by goverment funds so no real impact due to loss making. Currently also government increased the PAL & other applicable import taxed leading to a considerable financial impact to LIOC. Now biggest challenge is the comming price reduction of Petrol & Diesel. Goverment is tring to restore the lost confidence on goverenment by reducing price on petrol & diesel. This will definitly lead to incease LIOC loss. Other comming challenges are the exchnage rate depriciation & USD INT Rate hike by US Goverment. USD depriciation will increase the landed cost of Petroleum in one side and other side will leade to increse the payable liability to oil suppliers leading to huge erxchnage loss. US rate hike will increse the USD borrwing rate & the supplier margin on product credit. This will leade to increase finance cost and product import cost. The impact wil be very very huge. Part of the impact will be able to identify by looking at the loss of comming quarter results Q3 2015_16. Definitly this impact will leade to make loss in Q4 also. It is wise to monitore the comming quatrters results.
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