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| Sunday, 19 September 2004 |
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Laugfs price hike unreasonable - Minister by Jayantha Sri Nissanka Trade, Commerce and Consumer Affairs Minister Jeyaraj Fernandopulle proposes the Government should provide Ceylon Petroleum Corporation (CPC) gas to one more company breaking the monopoly of the Laugfs Gas Company in order to provide gas at a reasonable price. The Minister said that the Laugfs Gas company has increased the gas prices by Rs.70 to Rs.740 when they had no reason to increase prices. "Still the Laugfs Gas company can sell a cylinder at Rs.600 while keeping about Rs.100 profit ", Minister said. The Minister charged that Laugfs Gas has no right to increase prices as the Company purchases 60% of the gas from the CPC at a lower rate. The CPC sells one kilogram of gas at Rs.35.27 to the Laugfs Company. A 12.5 kg cylinder costs them only Rs. 440.88. After adding 15% VAT, it come to Rs. 507. But Laugfs sells a cylinder at Rs. 740. Is it reasonable, he questioned. "The CPC sells gas to Laugfs not to sell it to cars and hotels but for households. There are 25,000 gas converted cars in the country. What Laugfs gas does is to sell gas for cars and to hotels and import 40% of gas for household consumption. Still Laugfs can sell gas at Rs. 600 a cylinder", the Minister added. He said that Laugfs make a huge profit squeezing people's necks. They purchase 50 metric tons per day and fill 4000 cylinders. Laugfs Gas Company fill 120,000 cylinders per month. |
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