Litro, Laugfs to sell gas at same prices: Minister

23 July 2023 01:47 pm Views - {{hitsCtrl.values.hits}} 5 Bookmark

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Minister of Trade, Consumer Affairs and Food Safety Nalin Fernando stressed that according to the existing price formula, the two LP gas companies should sell gas at the same prices and that legal action would be taken if this requirement is violated.

He told the media that Litro Gas had taken steps to reduce its price but Laugfs Gas had not, and that he received complaints in this regard from the public and several organizations.

“The difference of prices of a cylinder of domestic LP gas of the two companies is Rs. 708 which is an enormous difference. I had talks with the management of Laugfs Gas in this regard. They expressed diverse views. However, I advised them to reduce the prices soon to be on par with the prices of the other. The two companies should adhere to the price formula issued by the Ministry of Finance or else that company would be liable to legal action. Laugfs Gas has promised to show a positive response to this by Monday (24), the Minister said.

He further said it was his duty to supply gas to the consumer at the barest minimum price. (P.H.P. Perera)

Comments - 5

Daya Sunday, 23 July 2023 02:15 PM

Wonderful Minister, waked up suddenly from deep sleep. This has been happening for the last one year, at least. Competition doesn't work in Sri Lanka, eg; Petrol sector: when petroleum corporation increase or reduce, IOC will do same. Remember, India is importing oil from Russia on reduced prices compared to world market prices and still selling at high prices thereby earning very high profits. This is because our political leaders are corrupted and does allow the business to loot the consumers. We are living in Wonderful paradise.

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Sokrates Sunday, 23 July 2023 02:40 PM

What kind of small mind is this minister? Competition is absolutely necessary for a free market economy. All planned economies have failed so far.

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Dee Sunday, 23 July 2023 09:50 PM

So you go and buy gas at a higher price! Good for you

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Sokrates Monday, 24 July 2023 07:48 AM

Dee, it seems to me that you do not understand the free market economy with its competition. This market economy regulates the prices itself without state influence. Most people will of course buy the cheaper gas, which means the other competitor will have to get cheaper in order to survive. Usually even cheaper than the other. Those who cannot keep up in a "price war" are pushed out of the market. In this case, it's bad, since Litro Gas is a state-owned company. If the state subsidizes Litro gas, it is absolutely unfair. In order to have fair competition, this means that Litro Gas and its parent company Ceypetco must be privatised.

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sunny Monday, 24 July 2023 05:53 AM

Laugfs buy GAS at a higher rate from their office in Dubai. Their Dubai office buy LPG from the supplier who keeps LPG at Hambantota Terminal, keeps a big margin and sell to Laugfs Gas at a higher price. They can reduce prices if the buy direct from Hambantota instead of through their Dubai office who keep a big marging.

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