The prices of domestic gas cylinders would not have skyrocketed had the LPG pricing formula which was agreed upon with the companies was in operation, says the Chairman of Laugfs Gas PLC, W.K.H. Wegapitiya.

Joining Ada Derana “BIG FOCUS” this morning (October 12) for a discussion on the recent price hike, Mr. Wegapitiya noted that Laugfs Gas PLC revised the prices to cover the company’s costs.

He also pointed out that LP gas prices are expected to go up by USD 50 - 60 in the global market within the coming month.

The public would not have been burdened like this if the domestic gas companies were allowed to increase and decrease the prices from time to time, Mr. Wegapitiya explained.

“Are gas prices really high? No. In 2014, when the price was at USD 780 in the global market, the price of 12.5 kg gas cylinder stood at Rs. 2,340 in Sri Lanka. Subsequently, the prices were arbitrarily slashed at eight instances, targeting the election. Prior to the presidential election, the price was reduced by Rs. 250. It was further reduced by Rs. 200 when [the election] was at hand. It was again reduced by Rs. 250 following the election,” he continued, adding that this move completely disregarded the components of cost of the market.

Speaking further, Mr. Wegapitiya said, “What really needs to be done is to allow the market prices to be determined between the customer and the trader based on the supply and demand in an economy with a developed market.”

The Laugfs Gas chairman said LPG is not an essential item, explaining that there are only 4 million households in the country with a population of 22 million and less than 50 percent of them use LPG.

In the meantime, the Chairman of Litro Gas Lanka Ltd., Theshara Jayasinghe, who also commented on the recent price hike, stated the company incurred a loss of Rs. 11,000 million as of September.