Laugfs Gas to temporarily halt operations
By Rajiesh Seetharam
Laugfs Gas PLC announced that it was halting the import and distribution of Liquefied Petroleum Gas (LPG). In a corporate disclosure to the Colombo Stock Exchange, it stated “The Company had been in discussions with the relevant authorities over a period of time, to obtain a revision of domestic LP Gas prices as provided under fair pricing to compensate with the increased landed cost of LP Gas.
The landed cost of LP Gas escalated due to continuous increases in the world market prices of LP Gas.” The consent of the authorities is required to revise domestic prices of LP Gas, since it had been gazetted as an essential commodity as per Consumer Affairs Authority Act No. 09 of 2003. “The decision of the authorities concerned has been delayed in this regard and it is still pending.
This has compelled the company to temporarily suspend the import and distribution of LP Gas for domestic use. Therefore, a short-term interruption of supply of LP Gas may cause inconvenience to customers. The company will use its best endeavour to negotiate with the authorities to resume supplies of domestic LP Gas, at its earliest.
However, the subsidiary companies of Laugfs Gas PLC which contribute substantially to the turnover of Laugfs Gas PLC Group, will continue to engage with their normal business activities without any interruption.” Laugfs Gas PLC requested for a price hike by Rs 700. for a domestic gas cylinder at the last Cabinet subcommittee meeting held last month, which wasn’t approved, citing inconvenience to the public in the current pandemic situation in the country.
LAUGFS Gas (LGL) is a subsidiary of LAUGFS Holdings. The company entered into the liquefied petroleum gas (LPG) industry in Sri Lanka in 2001, LGL listed in the Colombo Stock Exchange (CSE) in 2010.