Gas companies push for price increase | Page 2 | Sunday Observer

Gas companies push for price increase

Gas companies are pushing for an immediate gas price increase, Director Marketing and Sales of Litro Gas Lanka Ltd., Chaminda Ediriwickrama said.

He added that the price increase (for a 12.5 kg size domestic cylinder), as suggested by the Consumer Affairs Authority (CAA), is Rs. 359. However, sources said the CAA is yet to consider the price hike request, following the increase of gas prices in the world market. The gas companies are further hit by the depreciating value of the Rupee against the US dollar.

The industry prices depends on various factors - two key variables that effect prices are the Saudi Armco Contract Price that is announced every month, and the currency exchange rate of the country.

Gas companies have voiced concerns of bankruptcy due to the lack of a proper pricing mechanism.

- AW