Closes trading as second highest gainer of the day
BY Shenal FernandoFollowing news of its 53% price hike, Laugfs Gas PLC shares had a significant rally in the Colombo Stock Exchange (CSE) yesterday (11).The non-voting share of Laugf Gas (LGL.X0) was the second highest exchange gainer yesterday, increasing by over 21.4% (Rs. 3.6) to close at Rs. 20.4 from the previous day’s close of Rs. 16.8. With an intra-day high of Rs. 21.0, LGL.X0 was the fifth most traded share with over 1,255 trades made, at a volume of 2.8 million.The voting share of Laugfs Gas (LGL.N0) surged during the first hour of trading to reach an intra-day high of Rs. 32.5, before settling due to selling pressure and closed the day at Rs. 28.9, up 10.7% (Rs. 2.8) from the previous days close of Rs. 26.1. With 1,525 trades, LGL.N0 was the fourth most traded share during the day with a volume of 2.8 million.On 10 October, Laugfs announced that the price of a 12.5 kg cylinder will be hiked by Rs. 984, increasing the price to Rs. 2,840. Similarly, the price of a 5 kg gas cylinder was hiked by Rs. 393, increasing the price to Rs. 1,136.As global market prices of liquefied petroleum gas (LPG) have increased significantly over the year, Laugfs Gas has been requesting the Government that they be allowed to increase local prices as well. Although the Government rejected these requests on multiple occasions, in August, it finally allowed Laugfs Gas to hike the price of a 12.5 kg cylinder by Rs. 363 to Rs. 1,856 and the price of a 5 kg cylinder by Rs. 145 to Rs. 743.At the time, however, Laugfs Gas PLC Chairman W.K.H. Wegapitiya told The Morning that he was “unimpressed” by the permitted hike.Laugfs Gas PLC further complained that this price revision in August was insufficient considering the current world market prices, and that it was in contravention of the express orders made by the Supreme Court in SCFR 163/ 2007 and the agreement between Laugfs Gas PLC and the Consumer Affairs Authority (CAA) dated 28 December 2007. Laugfs Gas PLC claimed that at the time, under the pricing formula in the agreement, they were entitled to sell a 5 kg LPG cylinder at Rs. 997, and a 12.5 kg domestic LPG cylinder at Rs. 2,493.
