Lanka IOC PLC announced that it will commission the country's first grease manufacturing plant as part of the company's strategy towards enhancing its revenues from other segments to keep its key auto fuel losses from significantly upending the overall financial performance. The 30,000 metric tonne plant being built in Trincomalee where LIOC has its lubricant blending operation has the capacity to meet the entire local demand. The Ministry of Foreign Affairs has already approved the work permits for skilled employees from India, who will provide with the technical expertise to commence the plant's operations. Grease plant is part of LIOC's strategic moves towards further expanding its petroleum downstream operations as the company looks to increase volumes in its lubricants, bitumen and bunkering operations to enhance contribution to the group's revenues and profits and thereby mitigate the adverse impact coming from its auto fuel losses due to administered prices. The absence of cost reflective pricing has caused both the LIOC and the market leader, the State-owned Ceypetco to incur heavy losses as their financial fortunes are at the mercy of which directions the global fuel prices move. As globe oil prices fast recovered to around $70 a barrel this year from its pandemic lows of around $17 a barrel at the height of the pandemic in April last year, the authorities were forced to raise fuel prices this June in a bid to keep the losses to a minimum.