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| Sunday, 9 November 2003 |
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| News Business Features Editorial
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CAA against gas price hike The request of Shell Gas Lanka Ltd., to approve the retail selling price per 12.5 kg. domestic LPG cylinder, from Rs. 595 to Rs. 614 has been rejected by the Consumer Affairs Authority (CAA) basically in view of the following reason: Taking account of the pecuniary benefit that should accrue to the consumers on account of the interest income, the company is siphoning off at present, on the cash deposits made by consumers for the empty cylinders, such interest income should actually have contributed to a further reduction of the selling price from the current level. The CAA also observed that some of the cost factors considered by the applicant company are unacceptable. These were the basis of applying to the cost of gas, the "demurrage" pertaining to a previous period, and its inapplicability to the consignments in question was considered unacceptable, and the additional profit included in the "throughput-fee" for Shell Terminal Ltd., which is within the same group of companies and functioning exclusively for Shell Gas Lanka being considered unacceptable. "The Authority, therefore, considers that in view of the above reasons, the request for the price increase from the current level of Rs. 595 to the proposed level of Rs. 614 per 12.5 kg domestic LPG cylinder is not reasonable and, therefore, should be disallowed", it said. |
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