• Chairman says Litro’s far-sighted purchases helped prevent a much higher price hike
• Notes 12.5 kg cylinder increased by Rs. 334, instead of Rs. 950
• February sees highest global price hike since Ukraine war began

Despite the drastic increase in prices of liquified petroleum gas (LPG) in the global market, Litro Gas Lanka (Ltd.) “only” increased the price of the 12.5 kilogram (kg) domestic gas cylinder by about a third of the actual increase due to Litro having studied market trends and placing orders for over 7,000 metric tonnes (MT) of LPG in advance, Litro Gas Lanka (Ltd.) Chairman Muditha Peiris claimed yesterday (5).

Speaking at a media briefing yesterday (5), Peiris noted that the price of a 12.5 kg cylinder, which should have increased by approximately Rs. 950 according to the pricing formula, was only increased by Rs. 334. 

“This month saw the largest increase in LPG prices in the world market in the recent past. From October last year, 1 MT of LPG was priced at around Rs. 560 in the global market, but today it has increased to Rs. 791. One may have a doubt as to how we increased (the price) only by Rs. 334 and absorbed the rest as a company. Having predicted that the prices in the world market will go up by a large margin in December (2022) following our study of market trends, we placed orders for an additional 7,100 MT of LPG in January before the increase in prices. Just as the global market controls us, we were able to be decisive. If we had waited until February to place orders, we would not have been able to enjoy this benefit. We understand that with the financial situation at present if we increased LPG prices by a large margin, the public would not be able to bear it.”

He further emphasised that the profits of approximately Rs. 500 million that Litro, the State’s LPG provider, was able to secure with this move will be enjoyed only by the domestic consumers of LPG.

Accordingly, the prices of domestic gas cylinders increased from midnight yesterday. The price of a 12.5kg cylinder increased by Rs. 334 (new price – Rs. 4,743); the cost of a 5 kg cylinder increased by Rs. 134 (new price – Rs. 1,904); while the price of 2.3 kg cylinder increased by Rs. 61 (new price – Rs. 883).

LPG prices around the world have risen since the beginning of the Russia-Ukraine conflict in February 2022. However, the increase witnessed recently is the highest spike in that period.

Responding to a query by the media pertaining to the increase in LPG prices for consumers of cylinders weighing 37.5 kg, Peiris said: “The prices of 37.5 kg cylinders will increase according to the increase in the global market. We are still undecided as to by how much it will increase; but, we will notify such in future. Using up all the US dollars with us, we were only able to place orders for 7,100 MT; therefore, we are able to provide this benefit to domestic consumers only.

“The Litro Gas company will ensure that another gas shortage will not occur”.