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Govt. to meet Laugfs over gas shortage

01 Aug 2021

  • Litro ready to fill Laugfs cylinders if CAA approves
  • CAA leaves matter to the two companies
  • SJB alleges customers forced to buy cylinders at high cost 
By Pamodi Waravita The State Ministry of Co-operative Services, Marketing Development, and Consumer Protection plans to hold discussions with private liquid petroleum gas (LPG) distributor Laugfs Gas PLC regarding the gas supply shortage that its customers are currently facing. Speaking to The Morning yesterday (1), State Minister of Co-operative Services, Marketing Development, and Consumer Protection Lasantha Alagiyawanna said that the Government hopes to have a discussion within the course of this week with Laugfs Gas on whether the state-run Litro Gas Lanka could refill Laugfs’ gas cylinders. Laugfs Gas Chairman W.K.H. Wegapitiya announced last month that since there are issues in opening Letters of Credits (LCs) to import gas, and banks are also facing a shortage of dollars, the company would have to naturally halt the importation of gas.  Litro Gas Lanka Chairman Theshara Jayasinghe told The Morning last week that while Litro has the capacity to cater to the market share of Laugfs Gas, it has proposed three solutions to the issue. “We are ready to sell gas in bulk to Laugfs at a nominal rate so they can continue operations. Secondly, we can also cater to their commercial market while they handle their retail market. Thirdly, if the regulator (the Consumer Affairs Authority) approves, we can fill their gas cylinders,” said Jayasinghe.  However, Wegapitiya told The Morning yesterday that he has concerns about the liability issues that would arise if Litro is allowed to refill Laugfs gas cylinders.  Meanwhile, the regulator Consumer Affairs Authority (CAA) has left the matter to be decided by the two suppliers.  “The two companies will have to come to an agreement on the matter,” CAA Executive Director Thushan Gunawardena told The Morning yesterday.  Earlier, CAA Chairman Maj. Gen. (Retd.) D.M.S. Dissanayaka has told The Sunday Morning that no official communication has been forwarded by Laugfs Gas to the CAA, of any intention to stop the importation of LPG.  Samagi Jana Balawegeya (SJB) MP Mujibar Rahuman, at a press conference held over the weekend, claimed that Laugfs customers are being compelled to purchase Litro cylinders at a cost of Rs. 8,000 each. “Laugfs customers are currently compelled to purchase a new Litro cylinder as their Laugfs gas cylinders are currently not being refilled. The new cylinder costs about Rs. 8,000 which is unbearable for many, due to the rising cost of living.” As global market prices of gas have increased significantly, both Litro Gas Lanka (which holds about 70% of the market share), and Laugfs Gas PLC (which holds about 30% of the market share), have been requesting the Government to allow them to increase local prices as well. However, the Government has been continuously rejecting these requests, as it would drive up the high cost of living further.


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