The Chief Executive Officer of GOIL PLC, Edward Bawa, has disclosed that he took over the company with a debt burden of about $110 million when he assumed office in 2025.

According to him, the liability was owed to BP, which at the time was the sole supplier of petroleum products to the company.

He explained that GOIL had difficulties meeting payment deadlines for invoices, resulting in what he described as a “ring-fenced” debt arrangement.

Mr Bawa indicated that the situation placed significant financial strain on the company and affected its operations, particularly its ability to compete effectively in the downstream petroleum market.

He noted that the high premiums attached to fuel supplies made GOIL less competitive at the pumps, especially during periods of rising fuel prices, as the company struggled to keep up with market dynamics.

The GOIL CEO also revealed that the company faced additional challenges, including outstanding obligations to financial institutions, supplier-related constraints and intermittent product shortages at some outlets, largely stemming from broader economic difficulties in recent years.

Speaking on Channel One TV on Monday, March 16, Mr Bawa said the company has since taken steps to reduce the debt significantly.

“At the time I got there, the ring-fenced debt was about $110 million owed to BP. We have been able to reduce it to about $30 million by engaging our bankers and taking advantage of a relatively favourable exchange rate,” he explained.

He added that the progress made in reducing the debt forms part of ongoing efforts to stabilise the company’s operations and improve its competitiveness within the petroleum sector.