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LPG shortage looms 

16 May 2021

 

  • Laugfs requests Govt. for price hike 

  • Litro prices to remain unchanged

  • Govt. to absorb Litro losses

    By Maheesha Mudugamuwa    As a shortage of liquefied petroleum gas (LPG) looms in the local market, the Government last week said that it was ready to absorb the extra amounts incurred by the state-owned LPG importer Litro Gas Lanka Ltd. in order to avoid shortages and to meet the current demand, The Sunday Morning learnt.  It is learnt that the importers are incurring a loss of around Rs. 500 per cylinder for the past six months. As a result, the main importers, Litro and Laugfs Holdings Ltd., have incurred billions of rupees in losses during the past several years.  When contacted by The Sunday Morning, Laugfs Chairman W.K.H. Wegapitiya said that his company is struggling to survive due to the losses.  “We have discussed this with everyone but we still haven’t got a positive response. We can’t run like this. We have already incurred a massive loss. We have requested the Government to increase the prices but they haven’t done that either,” he stressed.  Wegapitiya acknowledged that there was a shortage in the market while claiming that Litro too was facing a similar situation.  However, Litro said that the company will ensure that the 12.5 kg gas cylinder will be made available to the public without any shortage. In a recent statement, Litro said: “We assure our customers that our regular 12.5 kg cylinder will be available in the market without any shortage, at the same price.”  It is learnt that Trade Minister Bandula Gunawardana had informed Cabinet recently that there is a shortage of gas due to delays in imports. However, no decision had been taken by the Cabinet last week to increase gas prices. Attempts made to contact Gunawardana proved futile.  Meanwhile, when contacted by The Sunday Morning, Cabinet Spokesman Minister Keheliya Rambukwella said the Government will absorb the losses incurred by Litro and will make sure that there will not be any shortage in the local market. 


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