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| Sunday, 5 January 2003 |
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| News Business Features Editorial
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Another bombshell from gas companies? by ANTON NONIS While the price of domestic gas or Liquid Petroleum Gas (LPG) went up again, thus creating hardship to housewives, gas suppliers dropped another bombshell by saying they might be compelled to push up prices once again if conditions in the Middle East turn unstable due to Iraq situation. While a 12.5 kilo Shell gas cylinder is being priced at Rs. 598, that of Laugfs gas has been fixed at Rs. 580. Corporate Communications manager of Shell Gas, Stevphen Bartholomeuz told the Sunday Observer that they cannot sell a 12.5 kg cylinder for anything lesser, as the prices in the Middle East have gone up. The reason put forward by Laugfs Gas chairman, W. K. H. Wegapitiya too was the same. The Shell Gas sources said that they went into an agreement with the government in March last year drafting a formula for gas prices. Agreement has been, that the price in the local market is adjusted depending on the international market. Bartholomeuz said that if there's price rise in the international market, the formula allows them to increase price of gas here and vice versa. Even at this late stage, chairman of Mundo gas, Ariyaseela Wickremanayake, has assured their gas will enter the market at some stage later and will see to it that the domestic gas is sold at a far lesser price than both Shell and Laugfs, who hold the monopoly. The Mundo company has the full support of the government which tries its best to relieve burdens of the poor. The delay is mainly due to the filling plant now nearing completion in Galle. Meanwhile, the Ceylon Petroleum Corporation (CPC) which had earlier planned to shut down its refinery on January 15, has decided to stall to the idea due to the present unsound situation in the Middle East. According to high ranking petroleum sources, the CPC has decided to go ahead with the processing of crude oil to the maximum. This is with the intention of withstanding any crude oil shortage that might crop up due to a scarcity in the supplies imported. |
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