Archives

Shell price rise, if no VAT exemption - Moran

by Ravi Ladduwahetty

Shell Gas Lanka Ltd (SGLL) will increase the price of its Liquid Petroleum Gas products next week, if the Government does not exempt the company's products from the Value Added Tax (VAT), SGLL Chairman Bob Moran told the Daily News last night.

"We are awaiting the a Treasury initiative on this. Otherwise we will be reluctantly compelled to increase prices," he said.

Moran said he will be consulting his regional headquarters in Kuala Lumpur regarding the price increase, which he said, would be early next week, if there is no VAT exemption.

"If the Government exempts VAT from LPG products, then there will be no price increase for February and March," he said.

Moran explained that the company had the discretion of increasing prices by Rs. 102 per cylinder every two months according to the agreement signed with the Government. But the company would not go the full distance of the increase and it will well be short of that, he assured.

The price increase also reflects the tensions in the Middle East and the cold winters in the Northern Hemisphere, he said.

Moran, who conceded that Shell increased the price of domestic gas cylinders by Rs.31 from Rs. 567 to Rs. 598 in December, pointed out that its competitor was marketing a cylinder at Rs. 665. Nobody made a fuss over that, he said. 

News | Business | Features | Editorial | Security
Politics | World | Letters | Sports | Obituaries |

Produced by Lake House
Copyright 2001 The Associated Newspapers of Ceylon Ltd.
Comments and suggestions to :Web Manager