No drastic decision has been taken as yet on LP Gas and business would continue as usual, said Laugfs Gas PLC Chairman W.K.H. Wegapitiya scoffed at speculation that the company would terminate its LP Gas business if the price revision call goes unheeded.
“Laugfs will continue its LP Gas operations as usual. We have expressed our concerns with regard to the losses that we have been incurring due to the increase in global market prices of LP Gas and the problem with banks being reluctant to open Letters of Credit,” Wegapitiya said.
The rise in crude oil leads to a rise in the LPG rates and vice-versa. LPG is a safe and colourless gas and hence its use has tremendously increased in the domestic and industrial sector.
The retail price of liquefied petroleum gas (LPG) went up 10 per cent in the domestic markets early this year after demand rose in Western countries because of winter, pushing up the rate in the international markets.“We had been requesting an upward price revision since the former government was in power but what took place was just the opposite. Prices were slashed and our losses burgeoned,” Wegapitiya said. However, there has been speculation of a shortage of gas in the local market with media reports that Laugfs had decided to suspend imports owing to the growing losses. In a communiqué last week Litro Gas stated there would be no shortage of gas in the local market despite Laugf Gas deciding to suspend its gas imports. Litro Gas Chairman Theshara Jayasinghe said Laugf Gas that meets around 20% of the country’s domestic gas demand had decided to suspend its imports and Litro Gas is capable of covering that requirement.
The communiqué further noted that Litro Gas will issue gas to any type of cylinder in any colour and that it already has the necessary stocks to meet local needs.
It added that Litro Gas possesses the ability and market network to import extra stocks when necessary.