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| Sunday, 18 August 2002 |
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| News Business Features Editorial
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Now - gas war! by ANTON NONIS A price war on Liquid Petroleum Gas (LPG) which is extensively used domestically, is about to break out in the coming weeks. The latest contender into the gas business, the Mundo Gas (MG) has assured would-be consumers that it will carry out gas sales towards the end of this month. According to MG chairman, Ariyaseela Wickremanayake, a 12.5 kilo gas cylinder will be sold at Rs. 325, the lowest gas price tag so far in the market. Of the other two dealers, Shell Gas (SG) and Laugfs Gas (LG), (the former sells at Rs. 528 a 12.5 kilo cylinder and the latter at Rs. 396) the latter being the lowest price for gas now available. LG chairman W.K.H. Wegapitiya said that his was a reduction of Rs. 13 from its former price of Rs. 409. He was intending to increase the price by Rs. 14 with the introduction of VAT (Value Added Tax). "Earlier it was GST and gas was exempted from it", Wegapitiya said. A price increase was vetoed by the government and LG had to agree to sell at Rs. 396. Mr. Ariyaseela Wickremanayake said that gas prices of both Shell and Laugfs Gas are still far too high and should be reduced further. Laugfs Gas which came into existence last November, buys 1500 metric tonnes of gas from the Ceylon Petroleum Corporation (CPC) at the rate of Rs. 20,000 per mt. For the benefit of the consumer, Mr. Wickremanayake is prepared to fill any type of cylinder, either to those held by LG or by SG, an act that might be looked upon by them as something against business norms and ethics. He has calculated that by even selling Mundo gas at Rs. 325 he will be left with a very moderate profit. |
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