Dealers show reluctance in stocking gas cylinders in fear of price revision: LITRO Chairman

With the announcement to be made on price revision on cooking gas, some dealers and stockists show reluctance to buy and stock cylinders from the company and started spreading rumours saying that there would be no gas distribution during the months ahead, until fresh cargo of gas reaches the ports, LITRO Lanka Chairman Muditha Peiris said.

He told the Daily Mirror that there will be another announcement about the revision in the pricse of gas by this Saturday morning (29).

There would be a gas price reduction, but it could not be figured out with the current international market prices.

The gas prices in the world market are similar to the prices in October. With the change of the international market prices, there would be a price increase or decline in the range of Rs.50 or so, but not more than that, he said.

"The price of gas in the global market have come down by US$ 12 and US$ 14 during last week. But by this morning, we could not observe any notable fluctuation in the prices. However, the gas prices would stop at a break-even position without going higher or lower," he said.
 
"However, we have sufficient stocks to meet the demand, but dealers are so reluctant to buy and stock the cylinders, thinking that they would incur a huge loss. Therefore, the dealers are waiting until we announce the price revision," he said.

He said the company is aware of this behaviour by dealers from several areas, but we managed to send sufficient stocks and the issue was sorted out amicably.

The chairman said that 3,700MT of gas shipment (EPIC BOLIVAR from OMAN) is to reach the country tomorrow evening (28). Another shipment (Portugal LPG Tanker PGC PATREAS) will dock our port on November 2 and another (ST HARMONY) is expected to sail into the county's waters on November 6.

Therefore, these rumours might have been created by the dealers saying that there would be no gas distribution for a month until the shipment arrives, the Chairman said.

However, the dealers are waiting for the official announcement of the price revision, which will be announced in two or three days, he said.

The distributors are currently maintaining a stock of more than 60,000 gas cylinders with them. As far as we see, the dealers are reluctant to buy the cylinders and stock with them, Mr. Peris hinted. (CHaturanga Samarawickrama)