Gas companies demand price hike but CAA undecided
By Easwaran Rutnam
Liquid Petroleum Gas (LPG) companies have sought a gas price increase, mainly as a result of the Rupee depreciating against the US Dollar.
However, the Consumer Affairs Authority (CAA) said yesterday, that it has not decided on the price increase, and at the moment there does not seem to be a need for an increase.
Laugfs Gas PLC and Litro Gas have reportedly sought the price increase.
Gas companies have sought an increase of the price of a 12.5 kilogram domestic gas cylinder by at least Rs. 360.
The Director General of the CAA, M.S.M. Fouzer when contacted, told The Sunday Morning that world gas prices were on the decline, so there was no immediate need to increase prices.
“Saudi Aramco is the benchmark for world oil prices and there is a decline on the pricing. Transportation prices have also decreased with fuel prices coming down. So these are a few indicators as to why the price of gas does not need to increase,” he said.
However, he said that there are various other factors as well that are looked when deciding on the price of gas including the value of the Rupee against the USD.
Fouzer said that the CAA will study the application for a price hike and follow the due process before deciding if to increase or not.