'Fluctuating global oil prices big challenge'
Sanjeevi Jayasuriya
The fluctuating global oil prices have posed new challenges for the
sector related businesses where price revisions and action for cost
reduction have become the
way forward. The price of LPG during the past
few months has gone up unprecedentedly and this has warranted an upward
revision of price to sustain business as escalation costs have
threatened the company to maintain its operations as usual. We have
sought a price increase from authorities and this will implemented in
the near future, Laugfs Holdings Chairman W.K.H. Wegapitiya told Daily
News Business.
'The external influence on the LPG business is high and it is also a
politically sensitive venture. We play according to the market rule and
have performed well in a level playing field. The government involvement
in the decision making process should support the business growth, 'he
said. There should be conducive and encouraging environments to
facilitate local entrepreneurs and more institutional support is
necessary to produce more for them to take the country into the next
level.
Commenting on the global situation Wegapitiya said that the price
hike in the world market is due to a number of reasons, the key being
the unrest in the Middle East . The consumption of the developed Eastern
countries has gone up as the temperature levels in the North Pole has
dropped drastically. They use more LPG than before to overcome cold
conditions.
The agricultural LPG producing countries have faced a dearth in the
supply and they also purchase from the world market which has pushed the
prices up, he said adding that we are also faced with a cost increase
due to flexible exchange rates.
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