|
|
 |
 |
| Sunday, 20 October 2002 |
 |
|
 |
News |  |
| News Business Features Editorial
|
Gas consumers in for rude shock ! by ANTON NONIS The price of domestic Liquid Petroleum Gas (LPG) is likely to go up from this week, according to gas retailers. The Corporate Communications Manager of Shell Gas, Stephen Bartholomeus said they have decided to increase the price of a 12.5 kg LPG cylinder this week, currently sold at Rs. 528. The new price is yet to be decided. Laughs gas Chairman W.K.H. Wegapitiya said they too may have to increase their domestic gas prices from the current price of Rs.396, for a 12.5 kg cylinder. It is understood that the new pricing structure for gas tends to increase due to a rise in world market prices. Consequently, the Mundo gas people are doing their best to put their gas on the market shortly. The filling plants in Galle are geared for this purpose, according to Mundo Chairman, Ariyaseela Wickremanayake. The company intends to adopt a lower pricing policy of Rs.350 for a 12.5 kg cylinder, according to Wickremanayake. "We do not want to make big profits from gas sales and will be satisfied with a moderate profit," he said. Pertaining to the price increases of petroleum products such as diesel, petrol and kerosene in the country, Ceylon Petroleum Corporation (CPC) admits that last week's price hike too high. While both diesel and petrol have shot up by Rs. 1.50 per litre, kerosene increased by Rs.two. Here too, according to CPC sources, the price rise was mainly due to crude oil prices rising in the world market. CPC officials attribute this unhealthy trend in the crude oils arising as a result of the unstable political conditions prevailing in Iraq which has created groundless fears of possible shortages of international crude oil supplies. According to CPC's Deputy General Manager, Ranjith Wickremasinghe, this had always been the case. "Whenever there is unrest in the Middle East, the tendency has been that the prices of the crudes go up," he said. The CPC themselves say that the new prices fixed for diesel, petrol and kerosene are much higher. On this score, a gallon of diesel and petrol has risen by Rs. 6.75 while kerosene is up by Rs.nine. The high diesel price has already increased the price of a number of commodities in the country considerably resulting in increases in transport costs. Already coconuts are being sold at between Rs. 16-Rs.18 in the market. According to vendors, the new diesel prices may have an impact on vegetable prices as well which are currently moderate. From last January, the new pricing scheme for petroleum products was being tabulated by a committee consisting of a foreign consultant and other local experts on the daily pricing data of oil products which information is provided by an organisation called the Singapore Platts Global Alert. In fixing the prices, the committee takes into account the average prices of the previous month and exchange rates in fixing the new price. A technical pricing formula is made use of in the pricing of each petroleum product. The new pricing is finally subjected to ministry approval, according to CPC sources. |
|
News | Business | Features
| Editorial | Security Produced by Lake House |
