LP gas prices increased in Sri Lanka due to global gas price surge – Minister Vijitha Herath

Domestic gas prices have been raised in line with the recent surge in global gas prices, according to Minister Vijitha Herath.

Speaking during the weekly Cabinet media briefing today (07), Minister Herath explained that gas prices worldwide increased according to the Saudi Aramco price index, prompting a revision of local gas prices.

However, he assured the general public that gas supply has not been disrupted. Under the new government tender, gas is no longer being sourced from the Middle East. Instead, supplies are coming from the United States (80%) and South Africa (20%), according to the Minister.

Minister Herath also highlighted that the lack of sufficient storage facilities in Sri Lanka has contributed to higher costs. Currently, gas is being stored at a facility in the Maldives before being transported to the country. This process, coupled with the frequency of imports—once every three days—adds to additional costs, which also influenced the price increase, Minister Vijitha Herath noted.

Minister Vijitha Herath further stated:

“Globally, the LPG price index has risen. The Saudi Aramco index increased from $541.5 per metric ton to $787.50 in March. This affects both bulk and domestic gas, including our litre gas. Ideally, the price increase could have been even higher, but it was limited.

Previously, we faced issues due to insufficient storage for oil and gas. Under the new tender, supplies now come from Geogas rather than the previous Oman company. Most of it comes from the U.S., not the Middle East. Since this supply route is unobstructed, we have no disruption issues. But since we cannot store large amounts domestically, the gas is temporarily stored in the Maldives before being shipped here, which incurs extra costs. We already have plans to build permanent storage facilities and have started work to ensure stable gas supply in the future.”