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Gas price hike: Committee calculating

08 Mar 2021

In response to a request made by domestic gas suppliers for an increase in liquified petroleum (LP) gas prices, the Pricing Committee of the Consumer Affairs Authority (CAA) is currently calculating the total costs borne by the suppliers.  The two retail gas providers in the country, Laugfs Gas and Litro Gas, have requested an increase in retail gas prices claiming that gas prices in Saudi Arabia have increased since December driving the domestic gas suppliers to bankruptcy under the present pricing in the country.  Ministry of Trade Secretary Bhadrani Jayawardena told The Morning yesterday (7) that CAA has directed the request to their pricing committee which is currently studying the nature of the current pricing and factors that affect the pricing.  “The pricing committee of CAA is currently studying the increase in gas prices the suppliers have faced. All of the costs that are added from the point of purchasing from Saudi Arabia including shipping costs are being factored into this study.”  The observations of the CAA will be sent to the Ministry of Trade for further action once the study is completed, Jayawardena said.  When inquired about a possible gas price hike from the Minister of Trade Bandula Gunawardana yesterday (7), he stated that the grievances of the gas suppliers have to be looked into.  “For years, these suppliers have not been permitted to sell gas at the market price. So, the companies have faced a situation where they have been unable to sustain the companies. This must be looked into.” Gunawardana said that the suppliers have requested for a price hike that is, in the least, sufficient to prevent losses. He added that the matter could be discussed at the upcoming meeting of the Cabinet of Ministers though it had not been put on the agenda as at yesterday.


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