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‘Cooking with LP gas now cheaper than with kerosene and firewood’

06 Oct 2022

  •  Litro Chairman announces price reduction as ‘relief measure’
By Kiara Warnasuriya Announcing further price reductions on Liquified Petroleum Gas (LPG) yesterday (5), Litro Gas Lanka Ltd. Chairman Muditha Peiris claimed that LPG is now cheaper than the alternate methods of cooking (kerosene, firewood, electric stoves) that people were forced to adopt because of the lack of availability and affordability of LPG. “According to our observations, we have noted that following the gas shortage, a small percentage of consumers switched to alternate methods of cooking like kerosene, firewood, and electric stoves, while some alternated between gas and other methods as well. I think that now with these new price reductions, we can confirm with certainty that if used sparingly, gas would be the cheaper option when compared to the expense of other methods of cooking such as kerosene, firewood, and electrical stoves.” Peiris further stated that these reductions were imposed as a means of providing relief to Sri Lankan consumers, just as was done in the months of July and August 2022, according to the global market pricing formula that the company follows. “A 12.5 kg cylinder of LPG is now Rs. 4,280 and has been reduced by Rs. 271; a 5 kg cylinder of LPG is now Rs. 1,720 and has been reduced by Rs. 107; a 2.3 kg cylinder of LPG is now Rs. 800 and has been reduced by Rs. 48. It is important to note that we have brought down the price of a 12.5 kg cylinder of gas from an initial price of Rs. 5,000 with the first reduction of Rs. 246 in August, the second reduction of Rs. 113 in September, and the final reduction of Rs. 271 this month.” The Litro Chairman also stated that this price reduction and pricing formula was requested by Litro Gas Lanka, and was a joint effort between the President’s Office, particularly the President’s Chief of Staff Sagala Rathnyake, the Ministry of Finance, and the Consumer Affairs Authority. A new initiative has also been taken by Litro Gas to contribute to managing the prevailing dollar crisis, by launching an app that enables people living overseas to donate LPG cylinders to those in Sri Lanka who are unable to afford them. “As of now, we already have many individuals abroad who are contributing towards this cause. We hope this initiative that we have taken will grow and develop, and hopefully result in a sum large enough for at least two ships containing gas.” Peiris also added that Litro has already repaid Rs. 6.5 billion of the Rs. 26 billion it had received out of the World Bank credit facility, amounting to $ 70 million, for the procurement of LGP supplies, while the company aims to settle its balance dues to the Ministry of Finance by December 2022. He further stated that in spite of these reductions, Litro continues to move forward steadily, along with a fair amount of profit.


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