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Govt’s cheaper gas pledge no Laugfing matter

by Don Asoka Wijewardena

In the event of the Ceylon Petroleum Corporation entering the domestic LPG market, Laugfs Gas, which is selling at the lowest price, would be compelled to raise its price, warned Chairman W. K. H. Wegapitiya. He said Laugfs buys 35 per cent of its requirement from the CPC while the balance is imported at a cost of Rs 200 million per month.

Commenting on Petroleum Resources Minister A. H. M. Fowzie’s ambitious plan to sell the locally produced gas at 10 per cent less than the prevailing price of Laugfs, Wegapitiya said that only the first 50 metric tons, with 4000 cylinders, could be sold at 10 per cent less. But to continue in business and meet customer demand , the CPC, too, would be compelled to import gas. "Then it will have to increase the price which will be same as that of Laugfs and Shell" he said.

He said once the CPC stops selling LPG to Laugfs it will raise the price to be on par with Shell.

Director General of Laugfs Tilak de Silva, confirming Wegapitiya’s stand said the Sapugaskanda Refinery is closed for two months every two years for maintenance and this would add to the woes of the CPC.

Petroleum Resources Minister A. H. M. Fowzie said gas at the ten per cent less will be available before the forthcoming Sinhala and Hindu New Year.

 

 

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