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Shortage of Laugfs gas continues

19 Sep 2021

By Buddhika Samaraweera There continues to be a shortage of Laugfs gas in the market due to certain problems that have arisen in importing gas, according to Laugfs Gas PLC and the Co-operative Services, Marketing Development, and Consumer Protection State Ministry. Many people have posted on social media platforms, Facebook in particular, inquiring about places to buy Laugfs gas cylinders. According to these posts, in some places a new Laugfs gas cylinder is being sold at a whopping Rs. 10,000. When The Morning contacted Laugfs Gas PLC Chairman W.K.H. Wegapitiya yesterday (19) to inquire into the matter, he stated that there could be a shortage in the market due to problems in importing gas: “There may be a little shortage, but we supply gas to the market,” he claimed. However, when asked about reports that a gas cylinder is being sold for about Rs. 10,000, he said he was unaware of it. “It is not possible. No one would buy a cylinder for Rs. 10,000,” he said. However, when asked if any intervention could be made through the Co-operative Services, Marketing Development, and Consumer Protection State Ministry, in this regard, its Secretary, K.D.S. Ruwanchandra stated that such an intervention is not possible. He said that this situation has arisen due to the shortage of foreign currency reserves in the banks required for gas imports. “There is no way for the State Ministry to intervene. The banks do not give money to these importers to open letters of credit (LCs) and that is the issue,” explained Ruwanchandra. Over the past couple of months, Laugfs Gas PLC reduced its supply of gas due to a number of factors, including the Government’s refusal to comply with requests made by the said company to increase gas prices in accordance with the prices of the world market. People were seen subsequently complaining that there is a shortage of gas in the market with long queues forming outside Laugfs gas retailers. Taking into account the matter, the Consumer Affairs Authority (CAA) on 12 August 2021 granted permission to Laugfs Gas PLC to increase the price of a 12.5 kg gas cylinder by Rs. 363 from Rs. 1,493. Therefore, the new price of a 12.5 kg Laugfs Gas cylinder is Rs. 1,856. In addition, the price of a 5 kg Laugfs Gas cylinder was increased by Rs. 145, raising the price of a 5 kg Laugfs Gas cylinder which was Rs. 598 to Rs. 743. However, Wegapitiya was not satisfied with the said price increases at that time and when contacted by The Morning, he said that it was not sufficient to increase the price of 12.5 kg and 5 kg gas cylinders by Rs. 363 and Rs. 145, respectively, given the prevailing gas prices in the world market. When questioned as to whether it will now be possible to supply gas without any shortage following the permission to increase gas prices, Wegapitiya, at the time, noted that nothing could be stated in that regard as of then: “Suppose a hungry person wants a loaf of bread, but he is given only half a loaf of bread; is he satisfied with that?” he queried.

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