• Move would imbalance market share agreements 

The Government is planning to release an additional 200,000 to 300,000 Litro Gas Lanka Ltd. liquefied petroleum gas (LPG) cylinders to the market as a last resort if LAUGFS Gas PLC continues to fail to maintain its required supply, Deputy Trade, Commerce, Food Security and Cooperative Development Minister R M Jayawardena said.

Speaking to The Daily Morning, he said the Government was attempting to resolve the shortage through LAUGFS rather than immediately increasing Litro's market share, as doing so could create complications under existing supply agreements.

"LAUGFS supplies 20% of the market, while Litro supplies 80%. Litro has already released around another 3% above its 80% share to the market," he said.

He explained that releasing more Litro cylinders would create an imbalance under the agreements governing the two companies' respective market shares.

"We've planned to release another 200,000 to 300,000 Litro cylinders if LAUGFS continues to fail to supply the market properly. However, when we do that, there's an issue regarding the balance in the market. We can't increase the market share at once. Therefore, we're trying our best to resolve this issue through LAUGFS Gas itself," he said.

However, Jayawardena said the Government would have to take a different approach if the company failed to address the situation.

"If LAUGFS continues to fail in supplying gas to the people adequately, we'll have to set aside or cancel the agreements and take a decision. In such a case, we'll release more Litro cylinders," he said.

The Government's plans come amid continuing difficulties in securing adequate cooking gas supplies, with shortages affecting consumers in several areas.

The Government has previously accused LAUGFS of delaying or failing to place gas orders, while the company has attributed recent disruptions mainly to difficulties in international LPG procurement, shipping and supply chains.