No hike in gas prices - CAA chairman

by Lalin Fernandopulle

The Consumer Affairs Authority (CAA) has not approved any price revision on gas and would prosecute errant traders who try to fleece consumers during the festive season.

Chairman CAA, Sarath Wijesinghe said that stern measures have been taken against agents who had increased the price of a shell gas cylinder without CAA approval.

It is imperative that all traders display the prices of commodities which have been specified under Section 26 of the CAA Act No. 9 of 2003. Those who do not comply with the requirement will have to pay a penalty, he said.

Shell and Laugfs have called for a price revision but approval has not been given to increase prices. A price revision will be approved based on the application at the end of the month, he said.

When asked whether the CAA had given approval to the Shell company for a price revision, he said the CAA has to consider the circumstances based on natural justice and that it is illegal for the Authority to pronounce a judgement prematurely.

Chairman, Laugfs Gas Company, W.K.H. Wegapitiya said there is no option but to increase the price of gas by Rs. 100 per cylinder since world crude oil prices in the world market have gone up.

The price per cylinder wouldn't have been so costly had the CAA considered the previous requests and suggested a reasonable price increase, he said.

When gas prices are increased consumers are affected because it is not subsidised by the government like petrol and diesel.

The price of gas is not a political issue unlike petrol and diesel. If consumers are to be relieved of the burden of purchasing gas at a higher price the authorities should consider subsidising it, Wegapitiya said.

LP Gas prices rose by 80% during the past eight months.

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