• LPG supply from US and South Africa 

Steps have been taken to ensure an uninterrupted supply of Laugfs Gas to consumers during the festive season, starting from yesterday (8), the Consumer Affairs Authority (CAA) announced. A spokesperson for the Authority stated that following instructions from the Trade Minister, the Company has been informed to comply with the relevant legal requirements.

Previously, the Laugfs Gas Company announced that a shipment carrying 7,000 metric tonnes (MT) of gas had arrived at the Hambantota Port on Monday (6). Accordingly, the Company also confirmed that the distribution of the gas stock to consumers will commence from yesterday.

Meanwhile, the Director of the CAA, Asela Bandara noted that special raids and investigations will be launched during the festive season to monitor market activities and to take legal action against errant traders.

Also, domestic liquefied petroleum gas (LPG) prices have been raised in line with the recent surge in global gas prices, according to Minister Vijitha Herath. Speaking during the weekly Cabinet of Ministers media briefing on Tuesday (7), Herath explained that gas prices worldwide increased according to the Saudi Aramco price index, prompting a revision of local gas prices.

However, he assured the general public that gas supply has not been disrupted. Under the new Government tender, gas is no longer being sourced from the Middle East (ME). Instead, supplies are coming from the US (80 per cent) and South Africa (20%), according to him.

Herath also highlighted that the lack of sufficient storage facilities in Sri Lanka has contributed to higher costs. Currently, gas is being stored at a facility in the Maldives before being transported to the country. This process, coupled with the frequency of imports — once every three days — adds to additional costs, which also influenced the price increase, Herath noted. “Globally, the LPG price index has risen. The Saudi Aramco index increased from US Dollars ($) 541.5 per metric tonne to $ 787.50 in March. This affects both bulk and domestic gas, including our Litro Gas. Ideally, the price increase could have been even higher, but it was limited. Previously, we faced issues due to insufficient storage for oil and gas. Under the new tender, supplies now come from Geogas rather than the previous Oman company. Most of it comes from the US, not the ME. Since this supply route is unobstructed, we have no disruption issues. But, since we cannot store large amounts domestically, the gas is temporarily stored in the Maldives before being shipped here, which incurs extra costs. We already have plans to build permanent storage facilities and have started work to ensure a stable gas supply in the future.”