Energy Minister Udaya Gammanpila said that no proposal has been submitted to the Cabinet to increase the prices of LP gas. Responding to a question raised by a journalist regarding the increase in gas prices at the Cabinet press briefing on Tuesday (04), the Minister stressed that although the price of gas in the world market is increasing, so far no Cabinet decision has been made to revise the price of gas in Sri Lanka.
Meanwhile, it is reported that Laugfs Gas PLC, one of the largest providers of LP gas in Sri Lanka, is facing a serious financial crisis.
It has been observed in many stores that there is a shortage of Laugfs gas cylinders in the market.
Company sources said that they are exploring the possibility of stopping the importation of LP gas if there is no increase in domestic prices.
A final decision in this regard will be taken after discussions with government officials.
The company has repeatedly requested the government to increase the price of gas in the local market in line with global market prices.
Laugfs Gas PLC accounts for about 30% of the domestic LP gas market.
According to projected global market prices for the months of April and May coupled with the rising USD/LKR rate, the company expects a price hike of at least LKR 520.
Meanwhile, it also reported that Litro Gas is faced with a similar predicament.
Both companies are currently incurring heavy losses and are hoping for a price hike from the government soon, it is learnt.