Minister of Trade Wasantha Samarasinghe says legal action has been initiated against LAUGFS Gas PLC over allegations of misleading consumers and causing inconvenience to the public by failing to maintain adequate gas supplies.
Speaking to the media, Minister Samarasinghe said the Consumer Affairs Authority (CAA) had filed a case against the company yesterday (29), which is scheduled to be taken up for hearing on November 11.
The Minister alleged that Laugfs Gas had failed to follow proper procurement procedures, resulting in supply disruptions since last month.
He said the company had previously informed the Ministry of Finance that 3,800 metric tonnes of gas would arrive between October 20 and 28. However, the shipment did not arrive as scheduled.
According to the Minister, Laugfs Gas subsequently informed the CAA and the Ministry of Trade yesterday that the shipment would arrive between November 2 and 5.
Minister Samarasinghe accused the company of deliberately misleading the public and said the authorities had consequently been instructed to initiate legal proceedings.
He further revealed that Laugfs Gas had repeatedly requested permission to release its entire stock of 3,900 metric tonnes of gas at the Hambantota Port terminal to the domestic market.
Under its agreement with the Board of Investment (BOI), the company is required to export 80% of its gas while supplying only 20% to the local market.
However, the Minister said the government had issued a letter yesterday allowing the company to distribute 100% of its gas to the domestic market, subject to repayment of the tax concessions granted for the construction of its Hambantota gas terminal.
He maintained that there were therefore no restrictions preventing Laugfs Gas from supplying the domestic market through the Hambantota terminal.
Meanwhile, Minister Samarasinghe assured consumers that Litro Gas supplies had returned to normal, with approximately 1,200 metric tonnes being distributed daily.
He said Litro Gas was distributing 39,000 metric tonnes this month, compared to its usual monthly supply of 32,000 metric tonnes, to compensate for the shortage caused by Laugfs Gas.
The Minister added that Litro Gas had ordered 41,000 metric tonnes for November to ensure adequate supplies.
He pointed out that Laugfs Gas was expected to supply approximately 6,000 metric tonnes monthly, but had failed to meet this requirement.
Minister Samarasinghe also raised concerns over consumers who had paid deposits ranging from Rs. 10,000 to Rs. 15,000 for Laugfs Gas cylinders but were now unable to obtain refills.
He said the company would have to refund the deposits to affected consumers, enabling them to purchase Litro Gas cylinders.
The Minister reiterated that the government had taken measures to address the supply gap through Litro Gas while pursuing legal action against Laugfs Gas over the alleged disruption and inconvenience caused to consumers. (Newswire)