Laugfs cries foul over Consumer Affairs Authority decision

by Shirajiv Sirimane

The Laugfs Gas management is up in arms, as the Consumer Affairs Authority (CAA) has not granted them the green light for a price increase for their Liquid Petroleum (LPG) gas cylinders.

CAA has already granted approval for Shell Gas to increase a gas cylinder by Rs. 110. "This is very unfair," said the Chairman Laugfs Lanka Limited, W. K. H. Wegapitiya.

He said that the CAA had called up both the Shell and Laugfs for a meeting last month and both have explained their problems. The price of a metric tonne of LPG, which was US$ 585 in January 2006, has been priced at US $ 627 for February. "This is an increase of US $ 55," he said.

Wegapitiya said that they couldn't afford to purchase LPG at a higher price and issue it to the customer at a lower price. He said that the CAA should give them the green light for a price hike or grant them subsidy as done for Prima and fertilizer.

Wegapitiya asked as to why the CAA is playing a 'double game' and giving preference to a multi national and giving 'step motherly' treatment to a local company.

He said that they made a representation to a senior government official in this regard and he promised to mediate in this issue. "We are confident that a favourable solution would be found," he said.

He said that the company has also invested nearly Rs. 50 million to set up an automated gas plant in Biyagama, which would help to fill gas more accurately.

When contacted, an official of the CAA said that they have given the approval based on the application made by Shell. "We are studying the proposal made by Laugfs," he said.