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Litro hikes prices, assures no shortage

3 months ago

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  • 12.5 kg cylinder increased by Rs. 80
  • Dealers await new stocks tomorrow
By Safrah Fazal Dealers of Liquified Petroleum Gas (LPG) anticipate the resumption of LPG distribution to consumers tomorrow (8) following the price revision announced by Litro Gas Lanka Ltd. last morning (7).  Speaking to The Morning yesterday, several dealers within the Colombo District revealed that they hope to receive stocks of LPG by tomorrow, although they have been completely out of stock since the end of October. “Since the price revision has been announced, we might receive stocks on Tuesday (8). The distributors were reluctant to distribute stocks anticipating a price reduction. The distributors haven’t informed us, but we assume that they will resume supply from Tuesday, since Monday (7) is a Poya day,” a Litro LPG dealer located in Battaramulla said. “We haven’t had stocks of LPG for the past few days, but the distributors have informed us that they will bring a load on Tuesday. We have been receiving fewer stocks than what we ordered over the past week or two, but the demand for LPG is not as high as it used to be, because people are unable to afford it anymore,” a dealer in Athurugiriya said. A dealer located in Colombo 5 stated that they had been informed by their relevant distributors that Litro was failing to issue sufficient stocks of LPG because Litro was likely running out of stocks. A dealer in Colombo 9 also opined: “It was only this month where a shortage of LPG was seen. Over the past two to three months there was no issue with the distribution despite the anticipated price revisions. Why is it only this month? Perhaps they are out of stocks once again.” Meanwhile, a LPG distributor told The Morning that the distributors had been supplying sufficient stocks of LPG to the dealers, but the dealers were reluctant to purchase LPG anticipating a price reduction.  “Litro has sufficient stocks of LPG, but it is the dealers who aren’t willing to purchase as they were waiting for a price reduction. The dealers created the shortage, not the distributors.” Litro Gas yesterday announced an increase in the price of LPG with immediate effect. The price of a 12.5 kg domestic cylinder of Litro LPG was increased by Rs. 80, 5 kg by Rs. 30, and 2.3 kg by Rs. 15 with immediate effect. Accordingly, the new price of a 12.5 kg domestic cylinder of Litro LPG will be Rs. 4,360, the 5 kg will be priced at Rs. 1,750, and the 2.3 kg cylinder of LPG will be Rs. 815 with the new price revisions. Speaking to the media, Litro Gas Lanka Chairman Muditha Peiris stated that although the price increase of the 12.5 kg LPG cylinder, according to the pricing formula, should be by Rs. 210, Litro has decided to increase the price by only Rs. 80, bearing the remaining cost in a bid to not burden the public any further. He also noted that although the price increase of the 5 kg and 2.5 kg cylinders are Rs. 83 and Rs. 37, respectively, Litro will bear the majority of the cost. He further noted that subsequent price increases could be anticipated in the upcoming months due to the increase in demand during the Christmas season. “We are responsibly stating that by 2 p.m. tomorrow (7) all LPG dealers should be fully stocked with cylinders. We have taken all necessary measures to ensure this.” LPG consumers have been complaining of an LPG shortage over the past weeks. While many dealers within Colombo district charged that they had not received stocks of LPG from distributors, Litro clarified that sufficient stocks were available and distributors may be hesitant in procuring stocks in anticipation of a price reduction this week.  

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