Sri Lanka’s gas crisis worsens

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COLOMBO (News 1st); The gas shortage in the country is yet to see a solution. But a new company named Siyolit has been formed by merging the two gas companies in the country.

Litro Gas Lanka and Laughs Gas are the two gas companies in Sri Lanka. They say they are facing losses due to the depreciation of the rupee.

As shortage of Laugfs Gas cylinders began to emerge in the market, the government permitted to increase the price of a 12.5 kilogram cylinder by 363 rupees.

The price of a five kilogram cylinder was increased by 145 rupees.

Only Laugfs Gas was allowed to increase prices.

However, Laugfs gas has been unable to meet the demand.

Long queues were seen outside gas stores in several areas over the past week.

Litro Gas Lanka holds a 70 percent market share in Sri Lanka’s gas market.

Several legal issues arose when Litro Gas said it will fill yellow gas cylinders during a shortage of Laugfs products.

Ultimately, the people were affected by the crisis.

Against such a backdrop, a company named Siyolit has been set up by merging Litro Gas Lanka and Laughs Gas.

It was appointed based on the advice of a committee led by president’s secretary P.B.Jayasundara and the finance secretary.

The committee was appointed under the instructions of the President.

W.K.H. Wegapitiya, the Chairman of Laugfs Gas said that the committee studied the matter using information it received and submitted a proposal to cabinet and this proposal was to set-up a new company to operate under the finance ministry, with Litro Gas holding a 75 percent stake and Laugfs Gas a 25 percent stake.

“Based on the finance ministry’s recommendation, a person named Susantha Silva has been appointed as its chairman. Earlier, he was the managing director of the Ceylon Petroleum Corporation. He was nominated by the president’s secretary and the finance secretary,” said the Chairman.

For the consumer, what is important is to resolve the gas shortage, rather than forming a new company.

“The company’s board of directors has met 4 times. The management will call for tenders from the global market by mid-October,” said Wegapitiya.

If tenders are to be called in mid-October, when will the people receive gas cylinders? The answer is uncertain.

Consumer Rights Activist Asela Sampath alleges the formation of the new gas company is a serious issue and needs to be reviewed.

Author: desi123 is an online news portal that aims to provide the latest trendy news for Asians living in Asia and around the World.

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