“This formula will also see a drop in prices when the global gas markets offer low prices. However if this is not done we too would have to stop the imports,” said President, LP Gas Distributors Association, Sathyendra Wijayapura. He said that the Litro is now suffering huge losses due to soaring LPG gas prices globally and to meet the higher price no local revision was given and they would not be able to carry on in this manner. European gas prices have soared in recent weeks, climbing to a high of $25 per million British thermal units.
“It’s also somewhat surprising to note that the government double standards by allowing a price hike for Laugfs which is still defunct (despite this price advantage) while Litro is overlooked. However we now see some positive sentiments towards a price revision by the government.”
He said that when a price revision is made there are plans to immediately import 150,000 domestic gas cylinders and offer this to Laugfs customers who are now without any other alternative. He also said that they are not in favour to form a third gas company (by CPC) as the investment would be over Rs. 7 billion and it’s not viable.
“Instead we have recommended several solutions to ensure the way forward for the LPG industry including the lease of Laugfs terminal for a 10 year period. We are even keen to purchase this facility outright with an international industry leader. We are also ready to ease Laugfs 40 billion debt taken from several banks, mainly State owned banks. In fact, during our entire history, we have not had any supply issues. We have even supplied LPG to Laugfs to meet their requirements and overcome their supply issues. We are also keen to meet Secretary to the President Dr. P. B. Jayasundara and talk about the issue and our plans.”