The prices of Liquefied Petroleum Gas (LPG) should be revised every two months according to a price formula, Litro Gas Lanka Limited Chairman Vijitha Herath said. Addressing “The Truth” press conference organized by the President’s Media Centre yesterday, the Chairman said the price formula should consider the world market price of LPG, the import cost, and the exchange rate.
He said that a price hike of LPG is inevitable in the immediate future, adding that it is necessary to maintain a continuous supply of LPG. He said the new prices would be declared by the Government shortly.
“In March 2021, the Litro Gas Company had a saving of Rs.14 billion, but today we owe Rs. 10 billion to banks and the loss of the Company within the past year amounts to Rs. 24 billion. Banks no longer provide loans to us, and we are unable to find money for the next shipment.
The real cost of a 12.5kg LPG cylinder is about Rs 5,500 now, but we sell each at Rs 2,600. The demand is between 80,000 and 100,000 cylinders per day. Accordingly, the Company incurs a loss of about Rs. 250 million daily if LPG is sold in the market at the current prices,” he said.
He pointed out that the cost of a LPG cylinder is Rs 4,600 at the terminal. “The price of a 12.5kg LPG cylinder has to be Rs 5,175, but the final decision will be announced by the Government,” he said.
A shipment of LPG arrived yesterday and another shipment is due tomorrow. The payments to both shipments had been made and the domestic LP Gas distribution has commenced again. He pointed out that the stocks in these two shipments are sufficient until about May 2-3. He said that a continuous supply of LPG would be made sure in the coming months with the help of the Indian Credit Line, and term and spot tenders. “The World Bank has agreed to provide funds to open Letters of Credit for another month or two. The supply will return to normalcy within another month. It cannot be done overnight,” he added.
by Daily News Sri Lanka
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