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| Sunday, 19 September 2004 |
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Domestic gas price rise highly irregular - CAA By Anton Nonis Consumer Affairs Authority (CAA) says, the price increases of domestic gas by Shell Gas and Laugfs Gas are highly irregular and are `high handed' acts. Legal action would be taken against both. While the former had increased price of a 12.5 kilogram gas cylinder by Rs. 99, the latter increased it by Rs. 70. CAA Director General, Lal Abeygunaratne said, documents for legal action has already been forwarded to the Attorney General. Abeygunaratne said, the CAA Act required a producer or trader of an essential item, before increasing price, to inform the CAA on the amount of the increase, 30 days in advance. The supporting documents too had to be forwarded along with the application for examination by a special pricing unit of the CAA, before approval for the new price was granted. The `effective date' for the count of 30-days rested with the CAA. Abeygunaratne said, Shell Gas made its application for price increase on July 30. But, it did not have all the required supporting documents. They were forwarded subsequently, on August 9. As such, according to the CAA Act, calculation of the effective date for the 30-day period rested with the CAA. The CAA before granting permission for the increase, first wanted to discuss the issue with its client, the Shell Gas company on Sept. 13. However, the price was increased from Rs. 690 to Rs. 789 on the mid-night, Sept.5. Laugfs gas had made application for price increase, on Aug. 6 though the final supporting documents were forwarded on Aug. 12. Their price increase from Rs. 670 to Rs. 740 was from mid-night, Sept.6. The CAA said, both parties had breached CAA Act on price increase. However, they both say they are ready to face Court action. A fine of Rs. 50,000 to Rs.one million is liable on the offenders. Fine for repetition is Rs. 100,000 to Rs. One million. The CAA discusses with the Consumer Affairs minister and the Bar Association, for Ammendments to the Act for stiffer punishments on offenders, according to Abeygunaratne. |
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