Shell deal

The Government on Wednesday completed the process of gaining full control of Shell Gas thus breaking the monopoly of the multinational giant which held sway in Sri Lanka for over 15 years. Shell which was shown the door by Prime Minister Sirimavo Bandaranaike in her first term as Prime Minister in the early '60s was invited once again by her daughter Chandrika in 1995. Since then Shell Gas has been ruling the roost until the recent advent of Laughs somewhat denting its monopoly. But by then Shell had conquered the larger share of the market and virtually ran its business as a fiefdom arbitrarily increasing gas prices causing hardship to the consumer. The Government of course intervened in certain instances and Shell Gas was even hauled before courts to elicit an undertaking it would not increase Gas prices for a certain duration. But things did not change much even thereafter and it was calling the shots once again with the Consumer Affairs Minister only making feeble noises to get Shell toe the line.

The ready argument offered for the rise in gas prices was the inflation of prices in the world market. But as every one including the Minister knew this price increase was far out of proportion to the rise in the world market. The Shell management also at one time assiduously cultivated the media hosting cocktails to the members of the fourth estate almost on a weekly basis. Although this was ostensibly to build public relations it was also a ploy to blunt media criticism against frequent gas price hikes.

President Mahinda Rajapaksa should be commended for acquiring full control of the Shell Gas which will now be renamed Litro Limited. This of course is in line with his pledge in the Mahinda Chintana to revest all privatized ventures in the State. (He did this with Telecom and Emirates). Now Litro will have the sole monopoly of importing, maintaining stocks and to distribute liquified petroleum gas in the future.

Hopefully this will bring relief to the millions of consumers who today solely depend on Gas for their cooking, through a stable and affordable price formula. For, today even in villages the use of wood fuel had been discarded long ago and no longer do we see the humble hearth in homes any longer. It is perhaps this captive market that enabled Shell to raise Gas prices at their whim and fancy.

But the wrath of the people always were directed at the Government at such instances. Now that the Government has taken over control the people will feel justified in placing the blame for the gas price hikes on it. Therefore it will have to ensure there is no unconscionable rise in the price of gas in the future.

The take over Shell has come at a most appropriate time given that we would soon be producing our own gas requirements once the new terminal at the CPC oil refinery is completed. The Government for its part would certainly have taken this factor into consideration in its decision to acquire Shell. This would also mean a reduction in gas price with the elimination of import costs.

Hopefully the acquiring of Shell would be a catalyst for revesting all other privatized ventures in the State to bring relief to the public. The success of Telecom after its acquisition is also proof that the State too can manage and run commercial ventures competently like or even better than the private sector.

Enforce the law

The decision by the Police to round up motorists who fail to dip their headlamps thus blinding oncoming motorists is indeed a welcome move. According to Police Media Spokesman SP Prishantha Jayakody a Traffic Law operative from 1983 makes it mandatory for motorists to heed on-coming vehicles and dip their lights to ensure proper vision to their drivers. The observance of this law in the breach had led to an escalation of motor accidents, he said.

What we like to ask the Police is why was this law not enforced all this time since like the Police Media Spokesman admits this may have fatal consequences. This is also part of the lawlessness we see on our highways today. A majority of the offenders are children of the rich who race away in their sleek limousines ignorant of the law. A mere rounding up would not suffice since these folk can easily afford any fines imposed.

There should be prison terms prescribed for endangering life and limb through reckless breach of the law. The Police should also come down hard on motorists who use mobile phones while driving which is also sure to result in the same fatal consequences.