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Gas prices to go up?

05 May 2021

  • Roundtable discussions to find solutions to global price increase

  8The State Ministry of Co-operative Services, Marketing Development, and Consumer Protection reportedly held a roundtable discussion last night (4) to evaluate a solution to gas companies demanding a gas price hike, citing the increase in imported gas prices as a reason, The Morning Business learns. Speaking to us, State Ministry Secretary K.D.S. Ruwanchandra stated that the meeting was expected to be held after Parliament meets. Ruwanchandra further expressed that the meeting would result in an unbiased conclusion to the issue, as State Minister Lasantha Alagiyawanna would provide his directive. “We feel that we have only a few options in this matter. Based on this meeting, we will be able to come to a conclusion,” Alagiyawanna commented. When queried about the possibility of a gas price increase, Ruwanchandra stated that such an increase is one of the options. “A possible change in prices is primarily what we are going to discuss. There are three or four options, we are going to evaluate what we need to do. Minister Alagiyawanna will also attend the meeting in the evening,” Ruwanchandra stated.   According to local reports, Trade Minister Bandula Gunawardena informed the Cabinet on Monday (3) that there is a shortage of gas due to delays in imports. The delay was reported to be influenced by gas companies refusing to import further supplies, due to not being allowed to increase gas prices. As the announcement was made at a Cabinet meeting chaired by President Gotabaya Rajapaksa, the President instructed the Minister of Trade to take necessary steps to find out more details for the gas shortage. Accordingly, Laugfs Gas has confirmed there was already a shortage, while stressing that there will be no positive response from the Government if they were asked to revise the price of gas in line with the increased gas prices in the world market.  Laugfs suggested that that the price of gas should be increased by at least Rs. 400, adding that at present, a loss of Rs. 550 per gas cylinder is incurred. However, Litro Gas announced to local media that there is no shortage of gas, as there are sufficient stocks. It was also revealed that a ship carrying gas arrives at Litro Gas every three days. Nevertheless, Litro Gas pointed out that the company is also sharing the same problem that Laugfs Gas is facing: the non-increase in gas prices. On the other hand, the National Movement for Consumer Rights Protection (NMCRP) levelled allegations against Litro Gas Ltd. in end-April for increasing the price of a gas cylinder by introducing a new product named “Premium Hybrid”, and thereby deceiving consumers.


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