The Industry and Commerce Ministry yesterday said it rejected a request to increase the prices of LP gas by the state-owned Litro Gas Lanka Limited, Sri Lanka’s largest cooking gas importer, cylinder distributor and supplier.
“Sri Lanka will not allow any sudden hike in domestic LPG gas prices right away – even if the global crude rates continue to gallop,” a ministry statement said.
The Litro representatives at a recently held meeting were making a strong call on Industry and Commerce Minister Rishad Bathiudeen and the Consumer Affairs Authority (CAA) to upwardly revise the ‘transport cost component’ within the LPG pricing formula already agreed by with the CAA.
The Litro representatives said that the diesel costs have continuously escalated since 2007, making their LPG transport costs too to escalate, thereby eroding their margins.
However, the CAA officials had reiterated that the Sri Lankan domestic LPG prices in the market are now determined by a pricing formula agreed between the two LPG players (Litro and Laugfs) and the CAA and sudden ad hoc changes are adverse to the consumers and households that are heavily dependent on
“The crude price hike is hurting our economy in many ways and the LPG industry is no different. At present, global crude oil prices are at a four-year high and our consumers are facing the impact directly.
Very recently, in the CAA’s September 27 determination, we already allowed the district-to-district LPG prices with adjustments for transport, which is the pricing framework now in effect. Revising these already revised LPG market prices again at this moment is very damaging to our consumers,” Bathiudeen said.