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By Channa Kasturisinghe

Laugfs Lanka Gas Ltd (LLGL) will import LP gas from early next month in order to strengthen its supply base and increase its market share in the domestic LP gas market. The Company entered into an agreement with the Ceylon Petroleum Corporation (CPC) last October to purchase its entire LPG production from the CPC for the next three years.

LLGL entered the local gas market which was the monopoly of Shell Company and started selling domestic LPG at Rs. 100 less than its competitor.

However, the domestic LPG users specially those who in outstations were not able to benefit from the reduced LPG prices due to the short supply.

"Our aim is to expand our distribution network and supply sufficient amounts of LPG to all areas of the country, but it is inevitable that we import LPG to cater to the increasing demand," LLGL, Chairman, W.K.H. Wegapitiya told the Daily News.

"Initially we appointed 330 dealers in the Western Province to market about 130,000 cylinders. But within three years we have been able to expand our distribution network even to areas in the North and the East.

Today, we account for about 15 percent of the market share and we would be able to multiply it in the coming years," Mr. Wegapitiya said.

The LLGL at present distributes about 1,800 mts per month LPG for domestic users while the monthly market requirement is about 12,000 mts. LLGL will also import gas for the auto-gas market.

Mr. Wegapitiya said that LLGL would stick to the initial retail price of Rs. 409 per cylinder although the Shell Company increased LPG prices by Rs. 11 yesterday.

"We have no intention of increasing domestic LPG prices. We will not be able to reduce prices once we start importing," Mr. Wegapitiya said.

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