CPC restrained from selling auto gas

Four member companies of the Auto Gas Association of Sri Lanka obtained an enjoining order from the Commercial High Court of Colombo last week restraining the Ceylon Petroleum Corporation (CPC) from permitting Gas Auto Lanka (Pvt) Ltd., (LAUGFS) to sell LPG purchased from CPC as auto gas without offering the same terms and conditions to these companies.

The enjoining order which will remain in force till February 7, 2002 also restrains LAUGFS from selling LPG purchased from the CPC as auto gas without CPC offering the same terms and conditions to these companies, namely Gas Conversions (Pvt) Ltd., Petro Gas (Pvt) Ltd., City Auto Services (Pvt) Ltd., and Gas Auto On (Pvt) Ltd.

Ajit F. Perera, Hony. Secretary, Auto Gas Association of Sri Lanka told the ‘Sunday Island’ that the government was silent to the appeals made by the Association to prevent CPC from supplying subsidised LPG to LAUGFS for sale in their auto gas filling stations while the other competitors were compelled to buy imported LPG from Shell at much higher prices.

Individual members were forced to resort to legal action to avoid imminent closure of their businesses with the resultant loss of their high investments and loss of employment to their respective workforces, Perera said.

Repeated attempts by the Sunday Island to contact CPC Chairman Daham Wimalasena for his comments were unsuccessful.