Laugfs Gas suspends LPG imports due to controlled prices

Laugfs Gas PLC yesterday said it had to temporarily suspend the import and distribution of LP Gas due to higher landed costs and controlled cooking gas prices in the domestic market. 

Laugfs Gas said the company had been in discussions with the relevant authorities concerned over a period of time, in order to obtain a revision of domestic LP Gas prices to compensate the increased landed cost of the same. The company noted that the landed cost of LP Gas has escalated due to continuous increases of world market prices. “The consent of authorities is required for revision of domestic prices of LP Gas since it had been gazetted as an essential commodity as per the Consumer Affairs Authority Act No.09 of 2003.

The decision of the authorities concerned has been delayed in this regard and it is still pending. This has compelled the company to temporary suspend the import and distribution of LP Gas for domestic usage,” Laugfs Gas said in a stock market filing yesterday.  “Therefore, a short-term interruption of supply of LP Gas may cause inconvenience to our customers. The company will use its best endeavours to continue to negotiate with the authorities to resume supplies of domestic LP Gas, at its earliest,” it added.