VAT caused increase in LITRO prices

By Chaturanga Pradeep Samarawickrama   

The government could have reduced the price of a 12.5 kg LITRO gas cylinder by Rs. 685 if not for the VAT increase, LITRO Lanka Chairman Muditha Peiris said.   

In the absence of VAT imposition, there was a possibility of retailing the 12.5kg gas cylinder at a price of Rs. 3,700.   

“We have not increased our prices. However, the government’s decision to impose VAT has prompted the adjustment. VAT was not applicable and was not imposed on LPG gas previously. The decision to impose VAT on LPG has resulted in the necessity to increase prices in accordance with the government’s directive,” he said.   
Accordingly, the price of 12.5 kg of domestic LITRO gas cylinders has been increased by Rs. 685 with effect from last night.   

Accordingly, the new retail price of the 12.5kg gas cylinder will be Rs. 4,250.   

The 5 kg gas cylinder will be increased by Rs. 276 while the 2.3 kg cylinder was increased by Rs. 127 from last night.   

Accordingly, the new retail price of the 5 kg gas cylinder will be Rs. 1,707, and the price of the 2.3 kg gas cylinder will be Rs. 795.