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Gas shortage possible as Laugfs stops imports

20 July 2021 02:32 pm - 14     - {{hitsCtrl.values.hits}}

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There could be a possible gas shortage as the LAUGFS Gas PLC, which is one of the largest suppliers of LP Gas in Sri Lanka has stopped all its imports.

Speaking to Daily Mirror, LAUGFS Deputy Chairman U.K. Thilak De Silva said they had been compelled to stop imports due to two main reasons like difficulties faced in opening Letters of Credit (LCs) and severe shortage of foreign currency with the banks.  

“We were asking for a price increase of gas cylinder from the previous government (Yahapalanaya) as the world market price was going up. However, instead of giving price increase, they reduced prices making LAUGFS incur heavy losses,” De Silva said.

“Over a period of time, we were lobbying with the Yahapalanaya Government on this matter. However, the matter was not addressed. Subsequently, we kept on selling gas cylinders thinking that this Government, which came into power in 2019 would adjust and address the matter. They also have failed to address the issue yet,” De Silva added. 

“Owing to this situation, we lost about Rs 5.3 billion. Accordingly, we are losing Rs. 750 per gas as of now. Against this backdrop, the banks are scared to open Letters of Credit (LCs) when the companies were incurring huge losses. In addition, there is a severe shortage of foreign currency with the banks,” De Silva underlined.

“Due to these two reasons, we are unable to service our customers at the moment,” he added.

“As far as the issue is addressed, we will have to suspend the imports. However, no sooner the issue is addressed, we will be restarting our businesses as usual,” he added.

He also conveyed his apology to the customers. “This is no fault of ours. It is beyond our control,” he added. 

When asked whether there could be a gas shortage, the Deputy Chairman said though there is no shortage of gas at the moment, there could be a shortage until such time this issue is addressed. (Sheain Fernandopulle)

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  Comments - 14

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

  • Jimmy Tuesday, 20 July 2021 03:19 PM

    We have wood.... you can keep your gas!! 6.9 mil intelligent voter fan club

    BuffaloaCitizen Tuesday, 20 July 2021 03:21 PM

    Reality dawns too late. You fight a war for 30 years denying your own brother his rights and then sell the country to survive to someone thousands of miles away having the remotest cultural connections to the country.

    Elizabeth Tuesday, 20 July 2021 03:22 PM

    This country is in full chaos. Thanks 69 electing set of looters.

    Prasanna R Tuesday, 20 July 2021 03:32 PM

    A conspiracy?

    Saranga Walimuni Tuesday, 20 July 2021 04:14 PM

    Downward spiral has just began

    Sepala Tuesday, 20 July 2021 06:43 PM

    @Saranga, There was nothing left to downward whether in spiral or circle or in any other shape of form. We DOOMSDAY to start in 1956.

    Dee Tuesday, 20 July 2021 04:38 PM

    Thank you 'Sar'!

    Truth matter Tuesday, 20 July 2021 04:43 PM

    Everything will be going into shortage soon. Good; gas; oil ; rice and all other necessary items. Wait and and see . This family rule is a course for this country. They freed the country from tigers to to give it to dragons .

    Viruwa Central Tuesday, 20 July 2021 06:51 PM

    We have got what we voted for.

    Mohan Tuesday, 20 July 2021 06:52 PM

    Just start cooking using FART - visionary leadership for year 2025 lol

    Thushiyantha Tuesday, 20 July 2021 07:31 PM

    Finally, Srilanka is for SALE with 99.99% discount

    Janaka Tuesday, 20 July 2021 07:47 PM

    Now people will line up to buy gas like they did for salt recently...When people panic and buy extra cylinders, obviously there will be a shortage...

    Arnold Tuesday, 20 July 2021 10:43 PM

    Soon to be like North Korea.

    Wickremeratne Wednesday, 21 July 2021 06:45 AM

    Laughing Stock,


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