LPG bulk imports to prevent cooking fuel shortage
View(s):Sri Lanka’s two Liquefied Petroleum Gas (LPG) providers – state-owned Litro Gas Lanka Ltd and Laugfs Gas PLC – are waiting for a government solution of settling the present issues of US dollar shortage and the inability in opening LCs in banks, officials of the companies said.
This was the main issue faced by Laugfs for the unnecessary delay in the import of LPG triggering the shortage of LPG in the market, chairman of the company W.K.H. Wegapitiya told the Business Times.
The government has proposed that LP gas importers start bulk imports as it will bring down import costs, a senior Finance Ministry official pointed out.
He noted that the government has made several suggestions relating to the continuous gas supply to the nation at the minimum price structure and to maximise the utilisation of LPG industry infrastructure currently available in the country.
In this context Presidential Secretary Dr. P.B. Jayasundera made a proposal at a recent high level meeting to set up a public and private partnership to maintain the Laufgs LPG terminal at Hambantota jointly between Laugfs Gas and Litro Gas for storage with the aim of reducing costs.
“Other than this suggestion I am not aware of any other new proposal submitted by Litro Gas to the government,” Mr. Wegapitiya said adding that the two LP gas suppliers have been lobbying the Consumer Affairs Authority for a price revision. Litro Gas has proposed to the government that it permits Litro to operate the Hambantota Laugfs terminal for a management fee that will cover the operation cost and pass the income generated to banks / Treasury, a Litro Gas official said.
It has also been proposed to take over the Hambantota Laugfs facility by the company on a long term lease of 10 years or to purchase 100 percent stake of the Hambantota Laugfs terminal via a consortium of investors.
But Laugfs Chairman Wegapitiya categorically stated that such proposals should be discussed with him before being presented to the government and no discussions were held towards this end.
Litro Gas Lanka Ltd noted that there was shortage of LPG in the market at present which is due to hoarding of stocks by retail dealers and small sales outlets, their official said.