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| Sunday, 25 May 2003 |
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Relief at last Consumers who were weighed down by high gas prices received some respite last week when Shell Gas Lanka Ltd announced a reduction in price of its domestic gas cylinders. Shell Gas Lanka Chairman Roberto Moran told a media conference that the price reduction, which was due to be implemented in June, will now take place with immediate effect. A Rs 70 reduction was effected last week while another Rs 25 reduction will come into effect mid-June. Accordingly, a 12.5 kg gas cylinder, which was priced at Rs 665, will now be sold at Rs 595. The media conference was convened by Minister of Commerce and Consumer Affairs Ravi Karunanayake, who described Shell's move as a victory for consumers. "Contrary to what people have been saying, the Government neither supports nor discriminates against companies, whether they are local or multinational. What we have been doing is seeking relief measures for consumers," he said. The Fair Trading Commission (FTC) filed an order against Shell Gas Lanka in January regarding LPG prices and the company's stand on not fully refunding consumers who wanted to switch suppliers, which the FTC had deemed 'an anti-competitive policy'. Consequently, Shell challenged the order in courts. It has now decided to settle the matter in an amicable way, out of courts. Moran said that they had no problem with the spirit of the FTC order as it is the duty of the Commission to act in the interest of consumers. "Our problem was regarding the basis of implementation of the order. However, we decided to take a conciliatory approach and settle the matter through discussions, which was facilitated by the Government. The court cases have now been withdrawn. The fall in gas prices in the global markets also prompted this decision," Moran said. Shell has also agreed to take a more flexible approach regarding refunding consumers who want to switch suppliers. Accordingly, it will make a Rs 1,400 refund for those wanting to exchange cylinders. A memorandum of understanding on these issues was signed last week between Shell Gas Lanka and the new Consumer Affairs Authority (formerly FTC). However, the company has not made a decision regarding common filling of gas cylinders, another matter raised by the Minister. Shell's price reduction was followed by Laugfs Lanka Gas (Pvt) Ltd, which slashed the price of its domestic gas cylinders also by Rs 70. |
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