Litro Gas says that they are now in a position to refill and distribute Laugfs LPG gas cylinders provided proper legal clearance is made.
A senior official from Litro said that they now command over 80% market share in the domestic gas market and if requested could meet the total demand of LPG cylinders. “There is no major technical/safety issue in refilling Laugfs with Litro. However, there is a legal issue as the Laugfs cylinder is not our property.”
Meanwhile, President, LP Gas Distributors Association, Sathyendra Wijayapura confirmed that Litro has grown its strength and could easily move in to fulfil the total requirement of domestic LPG gas requirement. Laugfs was also approved to increase the price of domestic gas with the Consumer Affairs Authority approving the price of a Laugfs 12.5kg cylinder to be increased to 1,856 and a 5kg cylinder to Rs. 743.
He said that Litro gas too is making operational losses due to the LPG price hike in the global market. “However as a responsible company, it is not out to put additional pressure on the public and would not look for an immediate price hike.” Subsequently, Laugfs Gas Chief Executive Chaminda Ediriwickreme was quoted as saying that they have placed an order for a shipment and expect to re-start operations in a small way on August 20, 2021. However, this is yet to be a reality. “We also want to say that it’s not practical to merge with Laugfs forming a new company and we oppose this move taking into account long term distributing implications.”
Wijayapura recalled and thanked former Treasury Secretary and current President Secretary Dr P. Jayasundara for initiating the takeover of 41% shares of Shell gas who opted to move out from Sri Lanka in 2011. “Dr Jayasundra obtained these shares by taking USD 61 million from Sri Lanka Insurance and Litro in return paid back this amount in four years justifying this acquisition.”
He also said that to date Litro has paid a dividend of Rs. 13.5 billion and also Rs. 34 billion in tax to the government.”
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