Addressing Parliament today (Nov.14) regarding recent concerns over LP gas prices and market distribution, Minister Sunil Handunnetti explained the structural breakdown of the country’s gas supply and responded to the pricing issues surrounding private sector LAUGFS gas cylinders.
The Minister explained, “Right now, 90% of Sri Lanka’s gas market belongs to Litro Gas, which is the blue gas cylinder. They refill about 2 million cylinders monthly. On the other hand, the yellow gas cylinder [LAUGFS] only fills about 300,000 cylinders per month.”
Detailing the background of the private sector supplier, Minister Handunnetti noted that past concessions granted since 2019 under Board of Investment (BOI) status required exporting 60% of production while allowing 40% to the local market. However, he charged that companies had utilized BOI facilities while failing to fulfill the export requirement, instead selling entirely to the domestic market without paying proper taxes.
Addressing the recent price adjustments, the Minister remarked, “Now, when they are trying to pass that crisis on to the public during budget time, what is happening? The budget has provided many reliefs to the cost of living, and they want to erase that topic and create a narrative that the gas bill is being increased at night. That political topic is what they are trying to create by increasing the gas price.”
While acknowledging that any price increase creates difficulties for consumers, the Minister emphasized that the government is taking steps to expand Litro’s storage capacity and cylinder supply to ensure stable public access. (Newswire)
