Sri Lanka is still to bring down domestic gas (LPG) prices even though a sharp price decline prevails in the international market, consumer protection societies said.
Approximately 42% of the population exclusively uses gas cylinders for domestic purposes and the interim government’s delay in reducing the LPG prices has irked at least 8.8 million Sri Lankans, consumer protection societies said. .
Approximately 42% of the population exclusively uses gas cylinders for domestic purposes and the interim government’s delay in reducing the LPG prices has irked at least 8.8 million Sri Lankans, consumer protection societies said.
It’s unfortunate that the Consumer Affairs Authority (CAA) is spending time to fix prices of essential commodities like Dhal, Sugar, Canned Fish and Vegetables where the farmers are suffering with it.
Although the CAA has the power to fix prices of essential commodities, it has so far not taken any action to fix retail price of LPG cylinders considering the rapid drop in international prices allowing two companies to amass massive profits by carrying out day light robberies, they alleged.
Market for distribution of Liquefied Petroleum Gas is characteristically a duopoly with its two key players being Litro Gas Lanka Ltd. (LGLL), a state-owned entity, and LAUGFS Gas PLC (LGP), a Colombo Stock Exchange listed company belonging to the LAUGFS conglomerate.
According to web sites of the CAA and both companies current controlled price was fixed in September 2019 at Rs 1493.90. From there onwards oil and LPG gas prices in the world market has came down significantly and CAA is still to intervene into this matter for the benefit of consumers.
Many countries including neighbouring India have cut prices of LPG cylinders proportionate to rapid drop in international market prices, but Sri Lanka has not taken any action to pass this benefit to Covid-19 hit public, consumer protection societies alleged.
According to our study, an analysis on LPG prices in several countries, Sri Lanka’s selling price of 12.5 kg LPG cylinder is based on US$ 0.52 per ltr price. For 12.5 kg, companies charge Rs. 1493 which is the highest price in the region.
According to www.globalpetrolprices.com as at May 4, difference between Chennai price and Sri Lankan price is Rs 382 per cylinder.
Every country is used to changing their LP gas prices as per the monthly raw material prices. Some countries call it a price formula.
Furthermore, India is used to filling 14.5 kg to a LPG cylinder while Sril Lanka is filling only 12.5 Kg in the same size cylinder and customer has to pay extra transport cost for this weight difference as well.
The price variations in 10 countries are as follows
Country Ltr price (USD) Cylinder price (LKR)
India 0.44 1111.00
Saudi Arabia 0.20 505.33
Afghanistan 0.25 631.00
Russia 0.27 682.00
Belgium 0.41 1035.09
Cambodia 0.41 1035.09
Taiwan 0.44 1111.00
Turkey 0.48 1212.00
Sri Lanka 0.52 1493.00