Litro Gas makes headway
State insurance giant Sri Lanka Insurance Corporation Ltd, under the
guidance of President Mahinda Rajapaksa acquired a major stake of the
petroleum multinational Shell Petroleum operating in Sri Lanka on
November 15, a media release from Litro Gas said.
Rebranded Litro Gas Lanka Limited, and Litro Gas Terminal Lanka (Pvt)
Ltd., the initial months of transition was not a smooth sail, with the
task of internal change management and the criticism levelled at the
state on the acquisition of a business entity with marginal profits.
The new management embarked on a uphill journey to mould a truly
national brand that would be a beacon to the state business sector.
With the dawn of peace, the economic boom saw major scale development
projects within the country, this and the innovative sales methods used
with customer convenience at every point of sale retain the existing
customers and to attract new customers, the demand for LP Gas grew. The
LPG industry in Sri Lanka relies on imports from the world market to
cater to approximately 90 percent of the countries LP Gas requirements.
After just over a year under the Board of Directors, Litro Gas has
recorded profits in spite of sharp increases in the world LP Gas prices.
Pricing to domestic customers are subject to a pricing formula
agreement governed by the Consumer Affairs Authority.
The formula allows price adjustments every two months in relation to
world market price movements.
Although this would mean that the prices would change regularly,
Litro Gas has always endeavoured in maintaining a price lower than the
allowed formula price, thus giving a great benefit to all of its
This has also enabled the company to maintain a stable price
protecting customers from the volatility in the global LPG market.