CAA in control of gas price formula - Minister

Irangika RANGE

The Government is fully committed to provide maximum relief to the consumers and that was why the Consumer Affairs Authority (CAA) did not permit gas companies to increase gas prices as they wanted, Trade, Marketing Development, Co-operatives and Consumer Services Minister Bandula Gunawardane said.

Addressing a press-briefing in Colombo yesterday, the Minister said Shell Gas had requested for a gas price hike by Rs. 220, but the CAA allowed only an increase of Rs. 103.

He said that the price of a domestic cylinder of gas has been revised following the gas pricing agreement formulated every two months by the Price Committee of the Consumer Affairs Authority (CAA) under the approval of the Supreme Court.

In May this year, the Shell company requested a gas price hike of Rs. 337, but we allowed a price increase of only Rs. 191," he said. "If there is any unfair trading taking place, the Government intervenes to protect the consumers," he said.

"We never hesitate to provide relief to consumers when gas prices go down in the world market; consumers have to bear up the burden of price hikes when gas prices are up in the international market," the Minister added.

Following the gas pricing agreement, the price of gas went down by Rs. 166, Rs. 310 and Rs. 53 respectively in January, March and July while the price went up by Rs. 191 and Rs. 103 respectively in May and September.

He said both Shell and Laugfs gas prices have gone up in the market this month compared to September last year. The Shell gas price in September 2008 was Rs. 1,863 while it is only Rs. 1,550 this September. Laughs gas price was Rs. 1,859 last September while it is Rs. 1,476 this September.