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Sunday, 11 March 2012

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Litro gas eases burden of consumers- Litro Gas chairman

The Government has passed benefits valued at nearly Rs. 800 million to gas consumers after nationalisation of the Litro Gas company in 2010, said Chairman of Litro Gas, Gamini Senarath.

“Litro has distributed gas below the regulated price by the price formula. When multinational Shell was running the business they regularly increased prices unfairly causing difficulties to consumers and they even went to Courts to increase prices,” he said. Senarath said that after nationalisation of the gas company, it has widened the distribution network providing opportunities for the masses to use gas, which was previously considered a luxury. Today, we distribute gas cylinders via cooperative societies on easy payment schemes. As a result annual gas sales have increased from 135,000 tonnes to 150,000 tonnes and Litro Gas now holds 75 percent of the market.

He said that gas prices were increasing rapidly in the international market and within the last few months it has increased from $880 to $1031 per tonne. If the multinational Shell company ran the business, gas prices would have increased several times during this period.

The Shell Gas company was nationalised in November 2010 and named as Litro Gas. By that time infrastructure, production, filling facilities and the distribution network of the company were in a dilapidated condition. The government had to find an investor and Sri Lanka insurance came forward and obtained 51 percent shares of the company.

During the past year, Litro invested heavily to modernise production facilities, infrastructure and the distribution network. We have also pulled out of several unfavourable contracts agreed to by Shell Gas.

The overall management of the company has improved during the last year and Litro has proved that the Government can run businesses profitably. The quality of the product, service and productivity of the staff has improved during this period. Nationalisation of this important utility, which directly affects consumers was done according to the directions of President Mahinda Rajapaksa,” Senerath said.

 

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