LP Gas companies report losses

Litro gas and Laugfs gas in Sri Lanka

With the sharp rise in gas prices in the world market, the two LP Gas companies have incurred a loss of Rs. 4.5 billion due to the non-increase of prices in Sri Lanka, it was reported yesterday (20).

Out of this, Litro Gas has suffered the heaviest losses amounting to Rs. 4 billion, it has been estimated. The loss incurred by Laugfs Gas is close to Rs. 500 million, Laugfs Chairman W.K.H. Wegapitiya said.

He said that between 45,000 and 50,000 metric tons of gas is imported to Sri Lanka every month and the price of gas has increased significantly in the recent past due to the spread of the Coronavirus and several other factors.

He said that despite repeated requests from Litro and Laugfs Gas to allow them to raise prices relative to world market prices, the Government did not allow it in order to protect consumers. However, in view of the continuous losses incurred by the companies concerned, the Consumer Affairs Authority (CAA) has given permission  to increase the gas prices over the last few days without prejudice to both parties.

Wegapitiya added that with the forthcoming winter, the LP Gas prices are expected to rise further in the world market. “The gas companies have requested the Government to set up a mechanism to provide gas at a concessionary price only to low income earners,” he said.

(Source: Daily News – By Shiran Ranasinghe)