Mundogas customers denied cheaper gas due to UNP move

by Lalin Fernandopulle

Mundogas customers were deprived of purchasing cheaper gas primarily due to the UNP government blocking Mundo from unloading gas cylinders at the Galle Port, said Chairman, Mundogas Lanka (Pvt) Ltd., Ariyaseela Wickramanayake in an interview with the Sunday Observer .

He denied allegations by the Sri Lanka Ports Authority (SLPA) that he had not provided the necessary documentations and paid all dues to the SLPA adding that he was harassed because of the competition with the multinational Shell Gas Lanka.

The SLPA accused Mundogas for not paying its ports dues and providing insurance and the safety guarantee.

The Ceylon Chamber of Commerce (CCC) wrote a letter to the then Minister of Power and Energy Karu Jayasuriya to take action against Mundogas unloading cylinders at the Galle barge which was detrimental to the safety and reputation of the country's port, Wickramanayake said.

He said it was unfair and discriminatory for the SLPA to stop Mundo gas unloading cylinders at the Galle barge when Shell and the Ceylon Petroleum Corporation (CPC) were doing the same at the Colombo Port.

Wickramanayake said he was being attacked constantly and prevented from carrying out operations due to his entry into the LPG market which forced Shell to reduce its gas prices.

Mundogas, the third player in the liquified petroleum gas market was liquidated following a petition presented to the Mt. Lavinia District Court by Mundago SA of Hong Kong in 2005.

"Our customers were not only deprived of cheaper gas but also the use of the cylinder to purchase gas from any agent. Gas agents of other companies even today reject Mundogas cylinders", he said.

Wickramanayake said the proposal that all gas suppliers could use each others cylinders was rejected because of restrictions imposed by copyright laws.

A cylinder of Mundo gas was sold at Rs. 395 with the cylinder given free to customers at the time the company commenced operations in 2002.

Wickramanayake said consumers should question the Shell Gas Company for not reducing the price on a gas cylinder when world crude oil prices have dropped considerably.

Mundogas customers have to purchase gas at exorbitant rates even though world crude oil prices have dropped from US$ 70 to 50 per barrel.

The only time Shell reduced its gas price was when Mundo was in operation. Shell brought down the price per gas cylinder from Rs. 450 to 400 to match the price of Mundo.

When contacted for his response, MP Ravi Karunanayake who initiated Mundogas operations blamed the chairman of Mundogas and the present government saying they are now answerable for the closure of the company. He said that he did it best to stop Mundogas being liquidated for the benefit of consumers.