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State Ministry investigates ‘Premium Hybrid’ cylinders

27 Apr 2021

  • Probe's findings likely out by next Tuesday; Govt. awaits results before action

  • Litro claims new product is an innovation, thus price ceiling inapplicable

  The State Ministry of Co-operative Services, Marketing Development, and Consumer Protection is conducting investigations into Litro Gas’ new product “Premium Hybrid”, a cylinder that is priced higher than other similar products available in the market.  State Minister Lasantha Alagiyawanna told The Morning Business that the results of this investigation, being undertaken by two state institutions, will tentatively arrive next Tuesday (4).  Alagiyawanna stated that a price ceiling is evidently mentioned in Section 18 of the Consumer Affairs Authority (CAA) Act No. 9 of 2003.  “However, it is also mentioned in the CAA Act that innovative products are not applicable to the price ceiling, Litro Ltd. informed us in a written statement that this product is an innovation (new product),” Alagiyawanna explained.  Thereby, Litro Ltd. had officially informed the State Ministry that the company had not conspired against the Act, as the regulations allow innovative products to be priced differently.   Alagiyawanna further revealed that Litro Ltd. was questioned last Tuesday (20) due to concerns of consumer exploitation raised in the State Ministry.  “Gas companies have been making losses; however, exploiting consumers will not be overlooked by us, because it is not an excuse. If they are running on losses, they can announce it to their consumers,” he commented.  Accordingly, having been questioned, Litro Ltd. has provided the State Ministry with technical data that argues the thermal capacity of the Premium Hybrid product is higher. Thus, the company justified that the quality of the gas is greater in comparison to other gas cylinders that have a weight of 18 litres.  It was also revealed that Litro Ltd. mentioned that the quality is higher due to the equal percentages propane and methane. “We didn't end our investigations there, just because Litro Ltd. gave a reason. We needed evidence to help us make the right decision. Therefore, we sent the technical data that Litro Ltd. gave to two state institutions, who are investigating further,” Alagiyawanna stated.  He further stated that if the results support the claims made by Litro Ltd., the company will be advised to make a public statement explaining the cause for the price of their product. “We will get the technical results next Tuesday or Wednesday, after which the Ministry will discuss and evaluate to make a decision. We will also take full responsibility in making a decision that protects consumers,” Alagiyawanna commented. He also stressed that the State Ministry is left with no other choice but to await the results, as Litro Ltd. cannot be condemned unless the company's claims are disproven by technical data. Furthermore, it was stated that as Litro Ltd. is one of only two local gas suppliers, consumers would be misled if rushed decisions are made based solely on allegations and not backed up by technical data.  The National Movement for Consumer Rights Protection (NMCRP) last Wednesday (21) levelled allegations against Litro Gas Ltd. of arbitrarily increasing the price of a gas cylinder by rolling out its new product “Premium Hybrid” and deceiving consumers   


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