Litro buying gas at $129 per MT raises eyebrows

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Energy experts question why Litro is trying to buy gas from Oman Trading that sells at USD 129 per MT for shipping and premium.

This is following the statement from Prime Minister Ranil Wickremesinghe and Chairman of Litro gas that a grant of USD 70 million from the World Bank and USD 20 million from the Government had been reserved to import 100,000 MT of LP gas instead of buying from Siam Gas which sells at USD 96 per MT.

“If funds are already assigned, why those funds cannot be utilised and negotiated with Siam Gas at USD 96,” an inside source told Ceylon Today.

Several Litro gas agents know that Siam’s quotation is the lowest however due to vested interest Oman Trading Company has managed to renew its contract. If Siam Gas is selected USD 3.3 million could be saved which is around 3,800 MT of LPG to fill 304,000 cylinders which would be enough to solve the cooking needs of 3,000 households. 

Litro Chairman Muditha Peries has not done any attempt to renegotiate with Siam gas as he is the silent agent of Oman Trading, it has been alleged. 

“His first duty was to reinstate alleged corrupted Director of Procurement, Terrance Appuhamy who concluded all his corrupted transactions during his tenure in 2015 to 2020. It has come to light that Appuhamy had retired but was recalled by Peiris and reappointed to the post last week. 

An efficient financial controller who was side-lined by Peiris led to bringing back H. Lakmali – Director Finance who was involving in the checks and balances in last two years after taking enormous salaries as exposed by COPE. Peiris has taken her to the pool last week. 

Peiris alleged to have been previously backed by Ravi Karunanayake who is back in action in making deal,” sources allege.

Siam Gas is probably one of the biggest LPG trading companies of Thailand conglomerate.  They have one of the largest vessel fleets in Asia with around 180 vessels. One cannot say they do not comply with vessels noted the reliable source as it is projected by vested parties.

According to sources, SIAM operates its VLGC mother vessels in Dhamra Port in Kolkota India and their redistribution mainly in the west coast of India and Bangladesh,  hence, it’s one of the best choices to deal for energy supply noted the inside sources. 

By Sulochana Ramiah Mohan