Gas companies request price hike
March 9, 2021 10:43 am
Gas companies have requested the Consumer Affairs Authority (CAA) for an increase of the Liquid Petroleum Gas (LPG) prices claiming that they are facing a financial crisis due to rising gas prices in the world market.
Currently, a 12.5 kg domestic LPG cylinder sells for Rs 1,493 in the local market.
When the government reduced the price of gas by 240 rupees from Rs 1,733 to Rs 1,493 in 2019, the gas price in the world market was USD 360 per metric ton.
However, the world market price of a metric ton of gas has risen by 67% percent reaching USD 604.
Accordingly, the gas companies point out that they can no longer sell gas at the prevailing prices.
Laugfs Gas Chairman K. S. Mr. Wegapitiya said, “The company has incurred a loss of around Rs 1 billion in the last three months. Although a gas cylinder is sold at Rs 1,493, it should sell for around Rs 2,148. There is a loss of Rs 700.”
Meanwhile, Director of Sales and Marketing of Litro Gas, Janaka Pathiratne, stated that they are expecting a solution as the rising gas prices in the world market have had a severe impact on their businesses.
When Ada Derana inquired the Chairman of CAA Major General (Retd) Shantha Dissanayake on the request made by the gas companies, he stated that the decision will be announced in the future.
