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| Sunday, 16 February 2003 |
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Features |  |
| News Business Features Editorial
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by ANTON NONIS The continuous price increases in domestic gas has caused havoc with the consumer. In view of the high price of gas, consumers are contemplating a change-over to other fuels for domestic use. While Laugfs gas increased the price of a 12.5 kilo cylinder by another Rs.85 last week fixing it at Rs.665, Shell Gas Lanka Ltd. indicated that it will follow by increasing the price of a cylinder by Rs.102. But, this is not the end of the story. Both gas suppliers have warned that there might be further increases in the future in the event of world market price hikes. The much-awaited Mundo gas which is to be supplied by Mundo Gas Lanka Ltd. (MGLL) has still not been distributed. MGLL chairman, Ariyaseela Wickremanayake told the `Sunday Observer' that the ship carrying the gas had reached the Galle harbour last Friday. 3,500 metric tonnes of gas had been brought and stored. When the price of Shell and Laugfs gas rose, consumers approached the Fair Trading Commission (FTC) for redress. FTC chairman A.D.V.D.S Indraratne said his department had received several complaints from the public regarding the continuous hike in gas prices. He summoned the two suppliers for discussion with the aim of bringing prices down. As Shell is a multinational company, FTC issued instructions for the price of a cylinder of gas to be reduced by Rs.45. But this was not done due to Shell saying they incurred expenses and the management had shown that it was not possible for them to think of any price reduction. The company even resorted to legal action by protesting at the Appeal Courts. Similarly, the FTC summoned Laugfs gas suppliers for discussion with regard to the price hike. Since Laugfs is a BoI company, it did not come under the FTC Act. Unfortunately, the FTC's effort was in vain and gas prices continued to rise further. It has resulted in the increase in prices of food sold at food outlets. MGLL chairman Wickremanayake said that gas will be available within the next two weeks. He said Mundo gas could be bought from any part of the country without any difficulty at a reasonable price, because of an effective distribution network. "I don't want to fleece the consumer. I am doing it as a service and not with the intention of making excessive profits," he said. The lower price for MGLL gas is due to low costs incurred in the transport of the gas from the Gulf. In addition, Indraratne said that in the case of Mundo gas there was very little capital investment and so the benefit could be passed on to the consumer. Mundo gas will directly go to the filling stations as soon as the gas is unloaded. At present, there are a limited number of 12.5 kg cylinders owned by MGLL which will be given to customers at a reduced price. At the same time, MGLL is prepared to fill any cylinder the customer brings whether blue, red or yellow. However, both Shell and Laugfs have shown great dissatisfaction about MGLL adopting such a practise. Laugfs chairman W.K.H Wegapitiya said it was unethical and against business norms. "How can he do it we will not allow it," he said. Mr.Wickremanayake, however, defending the issue of filling domestic gas cylinders belonging to either Shell or Laugfs with Mundo gas was quite emphatic that the soaring prices of domestic gas sold by the other two competitors as being totally unethical. [t1] |
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