CPC going for open tender on LPG?
PROTECTION LAWS: Ceylon Petroleum Corporation (CPC) is
analysing going for a open tender to sell Liquid Petroleum Gas (LPG).
Chairman of the CPC Asantha de Mel told the Daily News that they are
in the process of checking whether this tendering is against the
consumer protection laws of the country. âAt the moment our legal
officers are in the process of finalizing thisâ, he said.
At present CPC is providing LPG produced at its refinery to LAUGFS
gas to provide gas at a low price to the consumers.
But this agreement will end in April with LAUGFS.
Chairman of LAUGFS Group of Companies W.K.H. Wegapitiya said that 30%
of their total LPG requirement is fulfilled through the LPG produced at
the CPC refinery. The balance is imported.
LAUGFS purchased LPG from CPC for the Saudi benchmark rate without
freight charges. This cost cutting was passed on to the customer by
reducing LAUGFS gas price by over Rs. 20, compared with other
competitors in the market, he said.
Due to this open tender procedure LAUGFS will have to import their
total LPG requirement and could not pass the benefit of the price
reduction to the consumers.
âWe have informed all the authorities and this open tender will make
a monopoly in the local LPG market,â he said.
CPC produces about eight percent of Sri Lankaâs annual LPG demand. (