Gas price hike:

Minister threatens legal action

Rajmi Manatunga

COLOMBO: Trade and Consumer Affairs Minister Bandula Gunawardene yesterday said he would go before the Supreme Court to protect consumers if gas companies continue to increase LP gas prices based on the formula recommended by the Court.

Commenting on the request for a gas price revision in July, the Minister said legal action was necessary since only the Supreme Court could amend the gas price formula stipulated by it last year following an action filed by gas companies.

According to the Minister, LP Gas providers Shell and Laugfs have applied to the Consumer Affairs Authority (CAA) asking for price revisions, the former mulling a Rs. 324 hike and the latter a decrease from its present price.

“The increase has been proposed in line with the price formula recommended by the Supreme Court. While the Court has tried to strike a balance between the rights of gas providers and consumers, the Ministry and the CAA are responsible to act in the best interests of the consumer”.

“Therefore, if this difficulty continues, I as the Minister will have to apply to the Supreme Court seeking a clarification regarding this problematic situation,” he said.

Explaining the Government’s efforts to bring down the cost of living, Gunawardene said the Government was willing to provide rice at the concessionary price of Rs.57 even to private supermarkets, if they agree to sell it to the consumer at Rs.60.

“Rice is issued at this price from the rice stock we are maintaining for future use. Any recognised welfare association or supermarket can purchase from this stock, provided that they sell it to consumers at Rs.60 per kilo,” he added.