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| Sunday, 13 January 2002 |
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Laugfs likely to lower autogas price by DON ASOKA WIJEWARDENA Laugfs, which reduced the price of domestic gas by Rs 50 early this week is also likely to lower the price of autogas by an unspecified amount in the near future. Explaining the proposed reduction as a price equilibrium, Lankagas (Laugfs) officials said autogas was used by a large number of ceramic and tile industries, as well as some large scale manufacturing concerns, hence a price reduction would be a big relief measure. Managing Director of Lankagas, W.K.H. Wegapitiya, accused the multinational Shell companies of exploiting Sri Lanka's large-scale export-oriented companies which manufactured ceramic ware,tiles and other items. He charged that Shell Gas Ltd had raised the prices of LPG and autogas by 481 per cent forcing almost all companies to purchase their gas requirements from it at the inflated rates because of its monopoly. Following the recent price reduction of Laugfs domestic gas,a 12.5 kg cylinder of gas now costs Rs 359. Subsequent to discussions between the Minister of Commerce and Consumer Affairs, Ravi Karunanayake, and the Commissioner of Internal Trade, Sama. R. Kelaniya," the price slash was effected to eliminate the Shell monopoly," Wegapitiya said. Lankagas company established in 1995 entered the market along with Laugfs autogas. "Since its inception we had been urging the previous government of the dire necessity to eliminate the Shell monopoly and instead set up a local company to supply the gas requirements to both industries and domestic consumers," Wegapitiya said. However, the Shell monopoly was still in force despite all efforts to nullify it until December 2000, which resulted in to enable Laugfs to enter the market with auto domestic gas. The Laugfs now offers 15.5 kg of gas at Rs 359 - Rs 100 less than that of Shell, but consumers had to buy separate cylinders at a cost of Rs 2000. Meanwhile, Shell Gas Ltd, in a press communique issued last week said it was now considering a price reduction,which would be based on international market rates. |
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