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Prez, multiple ministries to address gas issue

12 Aug 2021

  • Govt. MP Muzammil slams Laugfs, CAA
  • Long queues outside gas retailers
  • Threat of consumer protests if issue unresolved
BY Buddhika Samaraweera The Co-operative Services, Marketing Development, and Consumer Protection State Ministry has stated that it would work with President Gotabaya Rajapaksa, the Cabinet of Ministers, the Finance Ministry, and the Trade Ministry to address the current shortage of Laugfs Gas PLC liquefied petroleum gas (LPG) in the country. Co-operative Services, Marketing Development, and Consumer Protection State Minister Lasantha Alagiyawanna stated this in response to a letter sent by the Government Parliamentarian Mohomad Muzammil regarding the prevailing Laugfs Gas PLC LPG shortage in the country. Alagiyawanna had claimed that the current gas shortage was not the fault of the CAA, as claimed by Muzammil, and that all necessary steps have been taken by the CAA in this regard. He further stated that since the start of this issue, action has been taken to amend the CAA Act in order to initiate certain legal actions with regard to the matter. “If there are any instances where the Co-operative Services, Marketing Development, and Consumer Protection State Ministry and the CAA have not implemented the existing rules and regulations, let us know,” he requested from Muzammil. In the letter sent to Alagiyawanna dated 8 August 2021, Muzammil had noted that Laugfs Gas PLC, which accounts for 20%-25% of the country’s gas market, with about 2 million regular customers, has stopped releasing gas cylinders to the market. He had also stated that the consumers had been severely inconvenienced as a result and that the Consumer Affairs Authority (CAA), which comes under the purview of the Co-operative Services, Marketing Development, and Consumer Protection State Ministry, did not appear to have taken any action against Laugfs Gas Lanka PLC. He had also claimed that said Company’s decision to stop the supply of a product with a consistent customer base, due to a request made to the Government to increase the price of that product not being approved in this manner, is not only unethical but also a legal offence under the CAA Act No. 9 of 2003 as amended. Meanwhile, despite the Government’s claims that the country has sufficient reserves of gas, people were seen queuing outside gas retailers yesterday in order to purchase Litro Gas Cylinders. The Government, on 10 August, announced that the country has enough gas reserves and that the state-owned Litro Gas Lanka Ltd. (LGLL) is at a capacity to fulfill the entire gas requirement of the country. Cabinet Co-Spokesman Dr. Ramesh Pathirana said that people should not be worried about any gas shortage and assured that the country has enough gas reserves. He further claimed that the people are unnecessarily worried about the continued availability of the gas supply due to the declaration of bankruptcy by a certain gas supplying company. The Co-operative Services, Marketing Development, and Consumer Protection State Ministry has instructed Litro Gas Lanka to supply the entire gas requirement of the country. When contacted by The Morning recently, the Co-operative Services, Marketing Development, and Consumer Protection State Ministry Secretary K.D.S. Ruwanchandra confirmed the matter and claimed: “Litro Gas has stated that it can fulfill the entire gas requirement of the country.” Meanwhile a group, including Consumer Rights Activist Asela Sampath and Low Country Estate Labourers’ Union (LCELU) President Ruwan Gallage, had arrived at the CAA office in Colombo yesterday with empty Laugfs gas cylinders in protest of the current shortage of Laugfs gas in the market. Sampath and others were seen having a discussion with CAA officials at the premises, and the protestors warned that they would organise a protest in front of the CAA if a solution is not given to the issue within three days. Speaking to the media at the time, Sampath said: “Currently, the whole country is at risk due to the Covid-19 pandemic. Now people can't even cook because of the shortage of gas. Certain ministers were seen in front of the media claiming that a solution would be provided to this issue within a week. Does that mean people should not eat for a week? They, the ministers, have no problem, they get everything they need. But now the people are in a desperate situation.” When contacted by The Morning, Laugfs Gas PLC Chairman W.K.H. Wegapitiya claimed that the main reason for the decline in their gas supply was the lack of sufficient US dollar reserves in state banks to open letters of credit for gas imports. Also, every gas cylinder is being sold at a loss of about Rs. 700, he further claimed. Accusing the Government of not having allowed a gas price increase, Wegapitiya queried: “How can gas be imported in such a situation? It is not fair to ask a company to market a product at a loss. If there are enough dollar reserves in the state banks and a price increase is allowed, we can import gas and continue supplying.”


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