LP gas prices to decrease

Wasantha Ramanayake

Colombo: The price of LP gas cylinders will go down in the coming months, President's Counsel Romesh de Silva submitted to the Supreme Court when a rights application filed by Laugf Gas was taken before court on Monday.

President's Counsel for the petitioner Laugf Company submitted that in terms of the pricing formula of the Consumer Affairs Authority, based on the international market price, LP gas prices should go down in the local market within the next month or two, on par with the LP gas prices in the world market.

The Court fixed the application for hearing for June 23.

The Bench comprised Chief Justice Sarath N. Silva PC with Justice Shirani Thilakawardane and Justice Andrew Somawansa. The President's Counsel submitted that if the tender is offered to Shell Gas which is not eligible for bidding, Shell Gas would have the monopoly of the LP gas market in the country.

He argued that such a situation would be detrimental to consumers' interests. He submitted that the petitioner's domestic LP gas cylinder is Rs. 50 cheaper than that of Shell' Gas.

Counsel Dinal Philips for the CPC Chairman submitted that since the CPC is in a dire financial situation, CPC would like the tender to be offered to the highest bidder. Court earlier issued an interim order stopping the bidding process to sell the CPC LPG produce until the final determination of the case.

The court also had earlier issued an interim order that extended the existing agreement between the CPC and the petitioner to supply the petitioner with LP Gas until the final determination of the application. President's Counsel Romesh de Silva appeared for the petitioner. Senior State Counsel Rajeeva Gunatilake appeared for the Petroleum Resources Minister. Dinal Philips appeared for the CPC Chairman.