Consumers to benefit at next gas price revision - Laugfs chairman

by Lalin FERNANDOPULLE

[email protected]
 

The benefit of the drop in world crude oil prices will be passed on to the consumers at the next price revision in January, said Chairman, Laugfs Holdings Limited, W.K.H. Wegapitiya.

He said commodity prices in the world market have dropped due to the global recession.

The Liquid Petroleum Gas (LPG) price is down US$ 350 per metric tonne from US$ 950 per metric tonne four months ago. Laugfs revised its LPG prices this month in line with the drop in world fuel prices.The price of a 12.5 kg cylinder was reduced by Rs. 178.

“The benefit of the reduction in import prices should be passed on to the consumers as world oil prices have declined.

Oil prices slumped to US$ 45 a barrel from US$ 147 per barrel during the middle of the year”, Wegapitiya said.

Oil prices in Sri Lanka are yet high compared to prices in other countries which have taken in to account the world market prices.

Fuel prices could have been further revised if there was proper planning. Laugfs Holdings filed action in courts calling for a halt on oil hedging deals by the Ceylon Petroleum Corporation (CPC) with foreign banks stating that there should be a proper mechanism on hedging. Wegapitiya said the company imports 70 per cent of its LPG requirements and buys the rest from the CPC according to world market prices.Laugfs does not get concessions from the CPC.

The price of a 12.5 kg cylinder was reduced to Rs. 2,500 from Rs. 4,500 due to the reduction in the import price of steel.

“The country should capitalise on the price reduction of imported items to develop local industries and bridge the regional income imbalance”, he said.